AMERICAN CENTURY CALIFORNIA TAX-FREE AND MUNICIPAL FUNDS

PROSPECTUS SUPPLEMENT

CALIFORNIA  TAX-FREE MONEY MARKET FUND  CALIFORNIA  MUNICIPAL  MONEY MARKET FUND
CALIFORNIA LIMITED-TERM TAX-FREE FUND CALIFORNIA INTERMEDIATE-TERM TAX-FREE FUND
CALIFORNIA  LONG-TERM  TAX-FREE FUND CALIFORNIA INSURED TAX-FREE FUND CALIFORNIA
HIGH-YIELD MUNICIPAL FUND

Supplement  dated June 28,  1999 *  Prospectus  dated  January 1, 1999 * Revised
March 17, 1999


The  following  replaces  the  third  paragraph  under  the  heading  "The  Fund
Management Team" on page 16 of the Prospectus:

G. David MacEwen
Mr. MacEwen,  Senior Vice President and Portfolio Manager,  has been a member of
the teams that manage  California  Long-Term  Tax-Free  and  California  Insured
Tax-Free  since May 1991. Mr. MacEwen has been a member of the team that manages
California  Limited-Term Tax-Free since June 1999. He joined American Century in
May 1991 as Municipal Portfolio Manager. He has a bachelor's degree in economics
from Boston University and an MBA in finance from the University of Delaware.


The sixth paragraph  under the heading "The Fund Management  Team" on page 16 of
the Prospectus is deleted.


The  following  replaces  the  seventh  paragraph  under the  heading  "The Fund
Management Team" on page 16 of the Prospectus:

Todd Pardula
Mr.  Pardula,  Vice  President and Portfolio  Manager,  has been a member of the
teams that manage  California  Tax-Free  Money Market and  California  Municipal
Money  Market  since May 1994.  Mr.  Pardula  has been a member of the team that
manages  California  Limited-Term  Tax-Free since June 1999. He joined  American
Century in February 1990 as an Investor Services Representative.  He also was an
Associate  Municipal Credit Analyst for two years. He has a bachelor's degree in
finance from Santa Clara University. He is a Chartered Financial Analyst.


The following is added immediately below the section "Abusive Trading Practices"
on page 20 of the Prospectus:

SPECIAL REQUIREMENTS FOR LARGE REDEMPTIONS

If,  during any 90-day  period,  you redeem fund shares worth more than $250,000
(or 1% of the assets of the fund if that percentage is less than  $250,000),  we
reserve  the right to pay part or all of the  redemption  proceeds  in excess of
this amount in readily marketable securities instead of cash. If we make payment
in securities, we will value the securities selected by the fund managers in the
same manner as we do in  computing  the fund's net asset  value.  We may provide
these securities in lieu of cash without prior notice.

If your  redemption  would  exceed  this limit and you would like to avoid being
paid in  securities,  please  provide us with an  unconditional  instruction  to
redeem at least 15 days prior to the date on which the redemption transaction is
to occur.  The instruction must specify the dollar amount or number of shares to
be redeemed and the date of the  transaction.  This  minimizes the effect of the
redemption on the fund and its remaining shareholders.


The  following  replaces  the  first  sentence  of the  first  paragraph  of the
subsection  "Other  Funds" under the heading  "Distributions"  on page 21 of the
Prospectus:

Each fund pays distributions from net income monthly.

SH-SPL-17212   9906