AMERICAN CENTURY CALIFORNIA TAX-FREE AND MUNICIPAL FUNDS, INC.

                              PROSPECTUS SUPPLEMENT
                            California Tax-Free Money
                       Market o California Municipal Money
                   Market o California Limited-Term Tax-Free o
                     California Intermediate-Term Tax-Free o
                         California Long-Term Tax-Free o
                 California High-Yield Municipal o California
                                Insured Tax-Free

                        SUPPLEMENT DATED JANUARY 15, 1998
                       Prospectus dated December 15, 1997

The  following  disclosure  replaces  the  paragraph  under  the  heading  "Cash
Management" found on page 19.

    Each of the  Funds  may  invest  up to 5% of its  total  assets in any money
market  fund,  including  those  advised  by  the  manager,  provided  that  the
investment is consistent with the fund's investment policies and restrictions.

The following  disclosure is added on page 27 of the  Prospectus,  following the
last paragraph under the heading "When Share Price is Determined."

    We have contractual  relationships with certain financial  intermediaries in
which such intermediaries  represent that they have systems to track the time at
which  investment  orders are  received  and to  segregate  orders  received  at
different times.  Based on these  representations,  the Fund has authorized such
intermediaries  and their designees to accept purchase and redemption  orders on
the Fund's behalf up to the applicable  cut-off time. The Fund will be deemed to
have received such orders upon acceptance by the duly  authorized  intermediary,
and such  orders  will be priced at the Fund's net asset  value next  determined
after acceptance on the fund's behalf by such intermediary.

The following disclosure is added following the last paragraph under the heading
"Transfer and Administrative Services" found on page 32 of the Prospectus.

    Pursuant  to  a  Sub-Administration   Agreement  with  the  manager,   Funds
Distributor,  Inc. (FDI) serves as the  Co-Administrator  for the Funds.  FDI is
responsible for (i) providing  certain  officers of the Funds and (ii) reviewing
and filing  marketing and sales  literature on behalf of the Funds. The fees and
expenses of FDI are paid by the manager.

The  following   disclosure  replaces  the  first  sentence  under  the  heading
"Distribution of Fund Shares" found on page 32 of the Prospectus.

    The funds' shares are  distributed by FDI, a registered  broker-dealer  (the
Distributor).  FDI is a wholly-owned indirect subsidiary of Boston Institutional
Group,  Inc. FDI's principal  business  address is 60 State Street,  Suite 1300,
Boston, Massachusetts 02109.

The  following  disclosure  should be inserted as the last  paragraph  under the
heading "Distribution of Fund Shares" on page 32 of the Prospectus.

    Investors  may  open  accounts  with  American   Century  only  through  the
Distributor.  All purchase  transactions in the Funds offered by this Prospectus
are  processed  by the  transfer  agent,  which  is  authorized  to  accept  any
instructions relating to fund accounts.  All purchase orders must be accepted by
the Distributor.


P.O. Box 419200                                        [american century logo]
Kansas City, Missouri                                          American
64141-6200                                                  Century(reg.sm)
1-800-345-2021 or 816-531-5575

SH-SPL-11268 9801

        AMERICAN CENTURY CALIFORNIA TAX-FREE AND MUNICIPAL FUNDS, INC.

                         BROKERAGE PROSPECTUS SUPPLEMENT
                        California Tax-Free Money Market

                        SUPPLEMENT DATED JANUARY 15, 1998
                       Prospectus dated December 15, 1997

The  following  disclosure  should be  inserted  after the  section  "Rule  144A
Securities" found on page 9 of the Prospectus.

CASH MANAGEMENT

    The fund may invest up to 5% of its total  assets in any money  market fund,
including  those  advised  by the  manager,  provided  that  the  investment  is
consistent with the fund's investment policies and restrictions.

The following  disclosure is added on page 12 of the  Prospectus,  following the
last paragraph under the heading "When Share Price is Determined."

    We have contractual  relationships with certain financial  intermediaries in
which such intermediaries  represent that they have systems to track the time at
which  investment  orders are  received  and to  segregate  orders  received  at
different times.  Based on these  representations,  the fund has authorized such
intermediaries  and their designees to accept purchase and redemption  orders on
the fund's behalf up to the applicable  cut-off time. The fund will be deemed to
have received such orders upon acceptance by the duly  authorized  intermediary,
and such  orders  will be priced at the fund's net asset  value next  determined
after acceptance on the fund's behalf by such intermediary.

The following disclosure is added following the last paragraph under the heading
"Transfer and Administrative Services" on page 16 of the Prospectus.

    Pursuant  to  a  Sub-Administration   Agreement  with  the  manager,   Funds
Distributor,  Inc.  (FDI) serves as the  Co-Administrator  for the fund.  FDI is
responsible  for (i) providing  certain  officers of the fund and (ii) reviewing
and filing  marketing and sales  literature on behalf of the fund.  The fees and
expenses of FDI are paid by the manager.

The  following   disclosure  replaces  the  first  sentence  under  the  heading
"Distribution of Fund Shares" on page 17 of the Prospectus.

    The fund's shares are  distributed by FDI, a registered  broker-dealer  (the
Distributor).  FDI is a wholly-owned indirect subsidiary of Boston Institutional
Group,  Inc. FDI's principal  business  address is 60 State Street,  Suite 1300,
Boston, Massachusetts 02109.

The  following  disclosure  should be inserted as the last  paragraph  under the
heading "Distribution of Fund Shares" on page 17 of the Prospectus.

    Investors  may  open  accounts  with  American   Century  only  through  the
Distributor.  All purchase  transactions  in the fund offered by this Prospectus
are  processed  by the  transfer  agent,  which  is  authorized  to  accept  any
instructions relating to fund accounts.  All purchase orders must be accepted by
the Distributor.



P.O. Box 419146                                        [american century logo]
Kansas City, Missouri                                          American
64141-6146                                                  Century(reg.sm)
1-888-345-2071 or 816-531-5575                                 Brokerage

BK-SPL-11422 9801