Franklin California Tax Free Income Fund N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

              Investment Company Act file number 811-02790

Franklin California Tax-Free Income Fund

(Exact name of registrant as specified in charter)

_One Franklin Parkway, San Mateo, CA 94403-1906

(Address of principal executive offices) (Zip code)

_Craig S. Tyle, One Franklin Parkway, San Mateo, CA 94403-1906

(Name and address of agent for service)

Registrant's telephone number, including area code: 650 312-2000

Date of fiscal year end: _3/31

Date of reporting period: _9/30/20

Item 1. Reports to Stockholders.

SEMIANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

California

Tax-Free

Income

Fund

September

30,

2020

Sign

up

for

electronic

delivery

at

franklintempleton.com/edelivery

Internet

Delivery

of

Fund

Reports

Unless

You

Request

Paper

Copies

:

Effective

January

1,

2021,

as

permitted

by

the

SEC,

paper

copies

of

the

Fund’s

shareholder

reports

will

no

longer

be

sent

by

mail,

unless

you

specifically

request

them

from

the

Fund

or

your

financial

intermediary.

Instead,

the

reports

will

be

made

available

on

a

website,

and

you

will

be

notified

by

mail

each

time

a

report

is

posted

and

provided

with

a

website

link

to

access

the

report.

If

you

already

elected

to

receive

shareholder

reports

electronically,

you

will

not

be

affected

by

this

change

and

you

need

not

take

any

action.

If

you

have

not

signed

up

for

electronic

delivery,

we

would

encourage

you

to

join

fellow

shareholders

who

have.

You

may

elect

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reports

and

other

communications

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by

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or

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financial

intermediary.

You

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copies

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your

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of

charge

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contacting

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financial

intermediary

or,

if

you

invest

directly

with

a

Fund,

calling

(800)

632-2301

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request.

Your

election

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paper

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apply

to

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funds

held

in

your

account.

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Not

part

of

the

semiannual

report

1

Shareholder

Letter

Dear

Shareholder:

During

the

six

months

ended

September

30,

2020,

first-

and

second-quarter

2020

data

reported

during

the

period

indicated

that

the

U.S.

economy

contracted

in

response

to

the

novel

coronavirus

(COVID-19)

pandemic.

Before

the

reporting

period,

the

U.S.

Federal

Reserve,

in

its

efforts

to

support

U.S.

economic

activity,

lowered

the

federal

funds

rate

twice

in

March

2020

and

implemented

broad

quantitative

easing

measures

to

support

credit

markets.

During

the

reporting

period,

the

Federal

Reserve

held

its

key

rate

unchanged

at

0.25%,

but

continued

quantitative

easing

and

adjusted

its

policy

in

August

2020

to

allow

more

flexibility

to

keep

interest

rates

low,

while

maintaining

a

2%

average

inflation

target.

During

the

six-month

period,

municipal

bonds

delivered

moderately

positive

total

returns

as

investors

were

attracted

to

tax-free

income

in

a

declining

interest-rate

environment.

Factors

contributing

to

this

positive

investment

environment

for

municipals

included

relatively

low

inflation,

interest-rate

declines

and

recent

actions

by

the

Federal

Reserve

to

support

the

municipal

bond

market.

On

July

1,

2020,

we

appointed

Ben

Barber

as

senior

vice

president

and

director

of

our

municipal

bond

department,

and

we

are

pleased

that

he

has

rejoined

Franklin.

Ben

most

recently

served

as

co-head

of

municipal

bonds

at

Goldman

Sachs

Asset

Management.

Ben

started

his

career

of

over

28

years

of

municipal

bond

investing

at

Franklin

in

1991,

working

with

several

current

investment

team

members

through

1999,

when

he

joined

Goldman

Sachs.

Franklin

California

Tax-Free

Income

Fund’s

semiannual

report

includes

more

detail

about

municipal

bond

market

conditions

and

a

discussion

from

the

portfolio

managers.

In

addition,

on

our

website,

franklintempleton.com

,

you

can

find

updated

commentary

by

our

municipal

bond

experts.

Municipal

bonds

provide

tax-free

income

and

diversification

from

equities.

Despite

periods

of

volatility,

municipal

bonds

historically

have

had

a

solid

long-term

record

of

performance,

driven

mostly

by

their

compounding

tax-free

income

component.

As

you

know,

all

securities

markets

fluctuate,

as

do

mutual

fund

share

prices.

As

always,

we

recommend

investors

consult

their

financial

advisors

to

help

them

make

the

best

decisions

for

the

long

term.

In

a

constantly

changing

market

environment,

we

remain

committed

to

our

disciplined

strategy

as

we

manage

the

Fund,

keeping

in

mind

the

trust

you

have

placed

in

us.

We

appreciate

your

confidence

in

us

and

encourage

you

to

contact

us

or

your

financial

advisor

when

you

have

questions

about

your

Franklin

tax-free

investment.

Sincerely,

Rupert

H.

Johnson,

Jr.

Chairman

Franklin

California

Tax-Free

Income

Fund

Ben

Barber

Senior

Vice

President

Director

of

Municipal

Bonds

This

letter

reflects

our

analysis

and

opinions

as

of

September

30,

2020

,

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

state,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

franklintempleton.com

Semiannual

Report

2

Contents

Semiannual

Report

Franklin

California

Tax-Free

Income

Fund

............

3

Performance

Summary

...........................

6

Your

Fund’s

Expenses

............................

8

Financial

Highlights

and

Statement

of

Investments

....

9

Financial

Statements

.............................

31

Notes

to

Financial

Statements

.....................

35

Shareholder

Information

..........................

42

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Semiannual

Report

SEMIANNUAL

REPORT

Franklin

California

Tax-Free

Income

Fund

This

semiannual

report

for

Franklin

California

Tax-Free

Income

Fund

covers

the

period

ended

September

30,

2020

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

to

provide

investors

with

as

high

a

level

of

income

exempt

from

federal

income

taxes,

including

alternative

minimum

tax,

and

exempt

from

California

personal

income

taxes

(for

California

residents)

as

is

consistent

with

prudent

investment

management

and

the

preservation

of

shareholders’

capital

by

normally

investing

at

least

80%

of

its

total

assets

in

investment-grade

municipal

securities

that

pay

interest

free

from

such

taxes.

1

Performance

Overview

The

Fund’s

Class

A

share

price,

as

measured

by

net

asset

value,

increased

from

$7.50

on

March

31,

2020,

to

$7.70

on

September

30,

2020.

The

Fund’s

Class

A

shares

paid

dividends

totaling

10.8393

cents

per

share

for

the

reporting

period.

2

The

Performance

Summary

beginning

on

page

6

shows

that

at

the

end

of

this

reporting

period

the

Fund’s

Class

A

shares’

distribution

rate

was

2.66%,

based

on

an

annualization

of

September’s

1.7714

cents

per

share

monthly

dividend

and

the

maximum

offering

price

of

$8.00

on

September

30,

2020.

An

investor

in

the

2020

maximum

combined

effective

federal

and

California

personal

income

tax

bracket

of

53.10%

(including

3.80%

Medicare

tax)

would

need

to

earn

a

distribution

rate

of

5.66%

from

a

taxable

investment

to

match

the

Fund’s

Class

A

tax-free

distribution

rate.

For

other

performance

data,

please

see

the

Performance

Summary.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Municipal

Bond

Market

Overview

Moving

into

April

2020

and

continuing

through

September

2020,

municipal

bond

market

technical

conditions

improved

from

the

market

disruptions

that

resulted

from

the

partial

economic

shutdown

due

to

novel

coronavirus

(COVID-

19)-related

social-distancing

orders.

Investor

funds

that

flowed

into

the

market

were

met

with

negative

net

supply

of

tax-exempt

bonds.

As

a

result,

ratios

of

municipal

bond

versus

U.S.

Treasury

(UST)

yields

continued

to

tighten

but

remained

significantly

wider

than

at

the

beginning

of

2020.

Municipal

issuers

projected

large

deficits

reaching

into

2021

as

revenues

from

tax

receipts

and

usage

fees

fall

while

costs

of

services

increase.

In

the

six

months

ending

in

September,

revenue

bonds

outperformed

general

obligation

securities

and

lower-quality

investment-grade

issues

outperformed

their

higher-rated

counterparts.

Within

the

revenue

bond

segments,

industrial

and

hospital

bonds

were

the

best

performers,

while

resource

recovery

and

special

tax

segments

lagged.

Credit

Quality

Composition

*

9/30/20

Ratings

%

of

Total

Investments

AAA

11.42%

AA

50.70%

A

25.03%

BBB

2.78%

Below

Investment

Grade

1.04%

Refunded

8.35%

Not

Rated

0.68%

*

Securities,

except

for

those

labeled

Not

Rated,

are

assigned

ratings

by

one

or

more

Nationally

Recognized

Statistical

Credit

Rating

Organizations

(NRSROs),

such

as

Standard

&

Poor’s,

Moody’s

and

Fitch,

that

can

be

considered

by

the

investment

manager

as

part

of

its

independent

securities

analysis.

When

ratings

from

multiple

agencies

are

available,

the

highest

is

used,

consistent

with

the

portfolio

investment

process.

Ratings

reflect

an

NRSRO’s

opinion

of

an

issuer’s

creditworthiness

and

typically

range

from

AAA

(highest)

to

D

(lowest).

The

Below

Investment

Grade

category

consists

of

bonds

rated

below

BBB-.

The

Refunded

category

generally

consists

of

refunded

bonds

secured

by

U.S.

government

or

other

high-quality

securities

and

not

rerated

by

an

NRSRO.

The

Not

Rated

category

consists

of

ratable

securities

that

have

not

been

rated

by

an

NRSRO.

Cash

and

equivalents

are

excluded

from

this

composition.

1.

For

investors

subject

to

alternative

minimum

tax,

a

small

portion

of

Fund

dividends

may

be

taxable.

Distributions

of

capital

gains

are

generally

taxable.

To

avoid

imposition

of

28%

backup

withholding

on

all

Fund

distributions

and

redemption

proceeds,

U.S.

investors

must

be

properly

certified

on

Form

W-9

and

non-U.S.

investors

on

Form

W-8BEN.

2.

The

distribution

amount

is

the

sum

of

all

estimated

tax-basis

net

investment

income

distributions

for

the

period

shown.

A

portion

or

all

of

the

distribution

may

be

reclassified

as

return

of

capital

or

short-term

or

long-term

capital

gains

once

final

tax

designations

are

known.

Assumes

shares

were

purchased

and

held

for

the

entire

accrual

period.

Since

dividends

accrue

daily,

your

actual

distributions

will

vary

depending

on

the

date

you

purchased

your

shares

and

any

account

activity.

All

Fund

distributions

will

vary

depending

upon

current

market

conditions,

and

past

distributions

are

not

indicative

of

future

trends.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

14

.

Franklin

California

Tax-Free

Income

Fund

4

franklintempleton.com

Semiannual

Report

The

Investment

Company

Institute

(ICI)

reported

net

inflows

of

approximately

$6

billion

into

municipal

bond

retail

vehicles

in

September

2020.

There

have

been

strong

inflows

of

funds

into

the

sector

after

reporting

record

outflows

in

March

2020.

For

the

six-month

period,

municipal

bond

retail

vehicles

had

approximately

$39

billion

of

net

inflows,

according

to

the

ICI.

For

the

six-month

period,

investment-grade

municipal

bonds,

as

measured

by

the

Bloomberg

Barclays

Municipal

Bond

Index,

posted

a

+3.99%

total

return,

while

USTs,

as

measured

by

the

Bloomberg

Barclays

U.S.

Treasury

Index,

posted

a

+0.65%

total

return,

and

investment-grade

corporate

bonds,

as

measured

by

the

Bloomberg

Barclays

U.S.

Corporate

Bond

Index,

posted

a

+10.66%

total

return.

3

All

three

of

these

fixed

income

sectors

underperformed

U.S.

stocks,

as

measured

by

the

Standard

&

Poor’s

®

500

Index,

which

posted

a

+31.31%

total

return

for

the

period.

3

Although

the

municipal

bond

market

has

seen

a

strong

recovery

since

March,

we

believe

strong

technical

support

should

continue

as

funds

flow

into

the

market,

with

negative

net

issuance

supporting

valuations.

It

is

our

view

that

despite

the

ongoing

pandemic

and

its

resulting

economic

downturn,

a

second

pandemic-related

market

disruption

is

unlikely

to

unfold

in

the

municipal

bond

market.

Most

municipalities

were

in

good

financial

shape

entering

the

COVID-19

shock

and

backed

their

municipal

bond

borrowings

with

very

high

security.

Additionally,

most

governments

with

outstanding

debt

have

a

large

variety

of

revenue

sources

that

enhance

the

likelihood

of

meeting

their

financial

obligations.

We

retain

a

cautionary

stance

toward

municipal

bond

credit,

where

strong

ongoing

credit

research

will

be

critical

for

those

looking

to

continue

capitalizing

on

opportunities

caused

by

market

disruptions,

including

in

sectors

that

have

lagged

during

the

recovery.

State

Update

California's

large,

diverse

economy

contacted

during

the

six-month

period.

The

state’s

unemployment

rate

of

5.5%

in

March

2020

increased

to

11.0%

by

September

2020

due

to

the

economic

effects

of

COVID-19,

exceeding

the

increased

7.9%

national

rate

at

period-end.

4

The

state’s

enacted

FY

2020

budget

modestly

increased

spending

while

maintaining

strong

reserve

levels,

but

revenues

modestly

declined

amid

the

pandemic.

Further

revenue

declines

projected

for

FY

2021

were

offset

by

education

spending

cuts,

suspension

of

certain

business

tax

breaks,

and

increased

federal

Medicaid

reimbursement

and

COVID-19

aid.

California’s

net

tax-supported

debt

was

$2,147

per

capita

and

3.2%

of

personal

income,

compared

with

the

$1,071

and

2.0%

national

medians,

respectively.

5

Independent

credit

rating

agency

Standard

&

Poor’s

(S&P)

affirmed

California’s

general

obligations

bonds

rating

of

AA-

with

a

stable

outlook.

6

The

rating

reflected

S&P’s

view

of

the

state’s

strong

economy,

substantial

build

up

in

reserves

and

strong

overall

liquidity

going

into

the

current

recession,

as

well

as

the

state’s

moderately

high

but

stable

debt

ratios.

S&P

noted

challenges,

including

substantial

projected

multiyear

declines

in

tax

revenue

due

to

the

current

recession,

high

housing

costs

and

social

service

spending

relative

to

other

states,

difficult-to-forecast

revenues

and

minimal

prefunding

of

retiree

health

care

benefits.

Investment

Strategy

We

select

securities

that

we

believe

will

provide

the

best

balance

between

risk

and

return

within

the

Fund’s

range

of

allowable

investments

and

typically

use

a

buy-and-hold

strategy.

This

means

we

generally

hold

securities

in

the

Fund’s

portfolio

for

income

purposes,

rather

than

trading

securities

for

capital

gains,

although

we

may

sell

a

security

at

any

time

if

we

believe

it

could

help

the

Fund

meet

its

goal.

Portfolio

Composition

9/30/20

%

of

Total

Investments

*

Transportation

25.22%

General

Obligation

18.66%

Utilities

12.50%

Refunded**

12.45%

Hospital

&

Health

Care

9.75%

Higher

Education

8.66%

Subject

to

Government

Appropriations

6.61%

Tax-Supported

2.88%

Housing

1.86%

Other

Revenue

1.41%

*

Does

not

include

cash

and

cash

equivalents.

**

Includes

all

refunded

bonds;

the

percentage

may

differ

from

that

in

the

Credit

Quality

Composition.

3.

Source:

Morningstar.

Treasuries,

if

held

to

maturity,

offer

a

fixed

rate

of

return

and

a

fixed

principal

value;

their

interest

payments

and

principal

are

guaranteed.

4.

Bureau

of

Labor

Statistics.

5.

Source:

Moody’s

Investors

Service,

State

government

–

U.S.:

Medians

–

State

debt

declined

in

2019,

but

likely

to

grow

in

coming

years

,

5/12/20.

6.

This

does

not

indicate

S&P’s

rating

of

the

Fund.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Franklin

California

Tax-Free

Income

Fund

5

franklintempleton.com

Semiannual

Report

Manager’s

Discussion

Based

on

the

combination

of

our

value-oriented

philosophy

of

investing

primarily

for

income

and

a

positive-sloping

municipal

yield

curve,

we

favored

the

use

of

longer-term

bonds.

Consistent

with

our

strategy,

we

sought

to

purchase

bonds

that

ranged

from

15

to

30

years

in

maturity

with

good

call

features.

We

believe

our

conservative,

buy-and-hold

investment

strategy

can

help

us

achieve

high,

current,

tax-

free

income

for

shareholders.

Thank

you

for

your

continued

participation

in

Franklin

California

Tax-Free

Income

Fund.

We

look

forward

to

serving

your

future

investment

needs.

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

September

30,

2020

,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

state,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Performance

Summary

as

of

September

30,

2020

Franklin

California

Tax-Free

Income

Fund

6

franklintempleton.com

Semiannual

Report

The

performance

tables

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

9/30/20

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

3.75%

and

the

minimum

is

0%.

Class

A

:

3.75%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

1

Average

Annual

Total

Return

2

–

A

3,4

6-Month

+4.13%

+0.23%

1-Year

+3.14%

-0.73%

5-Year

+22.56%

+3.36%

10-Year

+57.05%

+4.22%

Advisor

6-Month

+4.27%

+4.27%

1-Year

+3.40%

+3.40%

5-Year

+23.43%

+4.30%

10-Year

+59.06%

+4.75%

Share

Class

Distribution

Rate

5

Taxable

Equivalent

Distribution

Rate

6

30-Day

Standardized

Yield

7

Taxable

Equivalent

30-Day

Standardized

Yield

6

A

2.66%

5.66%

1.53%

3.26%

Advisor

3.02%

6.43%

1.85%

3.94%

See

page

7

for

Performance

Summary

footnotes.

Franklin

California

Tax-Free

Income

Fund

Performance

Summary

7

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

Because

municipal

bonds

are

sensitive

to

interest

rate

movements,

the

Fund’s

yield

and

share

price

will

fluctuate

with

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

prices

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Because

the

Fund

invests

principally

in

a

single

state,

it

is

subject

to

greater

risk

of

adverse

economic

and

regulatory

changes

in

that

state

than

a

geographically

diversified

fund.

Puerto

Rico

municipal

bonds

have

been

impacted

by

recent

adverse

economic

and

market

changes,

which

may

cause

the

Fund’s

share

price

to

decline.

Changes

in

the

credit

rating

of

a

bond,

or

in

the

credit

rating

or

financial

strength

of

a

bond’s

issuer,

insurer

or

guarantor,

may

affect

the

bond’s

value.

The

Fund

may

invest

a

significant

part

of

its

assets

in

municipal

securities

that

finance

similar

types

of

projects,

such

as

utilities,

hospitals,

higher

education

and

transportation.

A

change

that

affects

one

project

would

likely

affect

all

similar

projects,

thereby

increasing

market

risk.

Unexpected

events

and

their

aftermaths,

such

as

the

spread

of

deadly

diseases;

natural,

environmental

or

man-made

disasters;

financial,

political

or

social

disruptions;

terrorism

and

war;

and

other

tragedies

or

catastrophes,

can

cause

investor

fear

and

panic,

which

can

adversely

affect

the

econo-

mies

of

many

companies,

sectors,

nations,

regions

and

the

market

in

general,

in

ways

that

cannot

necessarily

be

foreseen.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

1.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

2.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

3.

Effective

9/10/18,

Class

A

shares

closed

to

new

investors,

were

renamed

Class

A1

shares,

and

a

new

Class

A

share

with

a

different

expense

structure

became

available.

Class

A

performance

shown

has

been

calculated

as

follows:

(a)

for

periods

prior

to

9/10/18,

a

restated

figure

is

used

based

on

the

Fund’s

Class

A1

performance

that

includes

any

Rule

12b-1

rate

differential

that

exists

between

Class

A1

and

Class

A;

and

(b)

for

periods

after

9/10/18,

actual

Class

A

performance

is

used,

reflecting

all

charges

and

fees

applicable

to

that

class.

4.

Prior

to

3/1/19,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

4.25%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

3.75%.

5.

Distribution

rate

is

based

on

an

annualization

of

the

respective

class’s

September

dividend

and

the

maximum

offering

price

(NAV

for

Advisor

Class)

per

share

on

9/30/20.

6.

Taxable

equivalent

distribution

rate

and

yield

assume

the

published

rates

as

of

6/18/20

for

the

maximum

combined

effective

federal

and

California

personal

income

tax

rate

of

53.10%,

based

on

the

federal

income

tax

rate

of

37.00%

plus

3.80%

Medicare

tax.

This

combined

rate

does

not

consider

the

impact

of

California’s

surcharge

on

taxable

income

in

excess

of

$1

million.

7.

The

Fund’s

30-day

standardized

yield

is

calculated

over

a

trailing

30-day

period

using

the

yield

to

maturity

on

bonds

and/or

the

dividends

accrued

on

stocks.

It

may

not

equal

the

Fund’s

actual

income

distribution

rate,

which

reflects

the

Fund’s

past

dividends

paid

to

shareholders.

8.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(4/1/20–9/30/20)

Share

Class

Net

Investment

Income

A

$0.108393

A1

$0.114163

C

$0.092905

R6

$0.119122

Advisor

$0.116096

Total

Annual

Operating

Expenses

8

Share

Class

A

0.76%

Advisor

0.51%

Your

Fund’s

Expenses

Franklin

California

Tax-Free

Income

Fund

8

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

183/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements,

for

Class

R6.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

4/1/20

Ending

Account

Value

9/30/20

Expenses

Paid

During

Period

4/1/20–9/30/20

1,

2

Ending

Account

Value

9/30/20

Expenses

Paid

During

Period

4/1/20–9/30/20

1,

2

a

Net

Annualized

Expense

Ratio

2

A

1,000

1,041.30

3.83

1,021.32

3.79

0.75%

A1

1,000

1,042.20

3.05

1,022.08

3.02

0.60%

C

1,000

1,039.40

5.88

1,019.30

5.82

1.15%

R6

1,000

1,042.90

2.38

1,022.74

2.35

0.46%

Advisor

1,000

1,042.70

2.56

1,022.57

2.53

0.50%

Franklin

California

Tax-Free

Income

Fund

Financial

Highlights

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

9

a

Six

Months

Ended

September

30,

2020

(unaudited)

Year

Ended

March

31,

2020

Period

Ended

March

31,

2019

a

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

..........................................

$7.50

$7.44

$7.27

Income

from

investment

operations

b

:

Net

investment

income

c

..................................................

0.11

0.22

0.14

Net

realized

and

unrealized

gains

(losses)

....................................

0.20

0.08

0.15

Total

from

investment

operations

.............................................

0.31

0.30

0.29

Less

distributions

from:

Net

investment

income

...................................................

(0.11)

(0.24)

(0.12)

Net

asset

value,

end

of

period

...............................................

$7.70

$7.50

$7.44

Total

return

d

............................................................

4.13%

3.98%

4.11%

Ratios

to

average

net

assets

e

Expenses

..............................................................

0.75%

f

0.76%

f

0.76%

f

Net

investment

income

....................................................

2.87%

2.97%

3.38%

Supplemental

data

Net

assets,

end

of

period

(000’s)

.............................................

$1,794,648

$1,395,165

$524,756

Portfolio

turnover

rate

.....................................................

4.29%

15.74%

14.12%

a

For

the

period

September

10,

2018

(effective

date)

to

March

31,

2019.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

California

Tax-Free

Income

Fund

Financial

Highlights

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

10

a

Six

Months

Ended

September

30,

2020

(unaudited)

Year

Ended

March

31,

2020

2019

2018

2017

2016

Class

A1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$7.49

$7.43

$7.31

$7.38

$7.59

$7.60

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.12

0.24

0.26

0.26

0.27

0.29

Net

realized

and

unrealized

gains

(losses)

0.19

0.07

0.12

(0.06)

(0.22)

(0.01)

Total

from

investment

operations

........

0.31

0.31

0.38

0.20

0.05

0.28

Less

distributions

from:

Net

investment

income

..............

(0.11)

(0.25)

(0.26)

(0.27)

(0.26)

(0.29)

Net

asset

value,

end

of

period

..........

$7.69

$7.49

$7.43

$7.31

$7.38

$7.59

Total

return

c

.......................

4.22%

4.14%

5.34%

2.66%

0.68%

3.82%

Ratios

to

average

net

assets

d

Expenses

.........................

0.60%

e

0.61%

e

0.60%

e

0.59%

0.59%

0.57%

Net

investment

income

...............

3.03%

3.12%

3.54%

3.53%

3.54%

3.87%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$11,270,290

$11,448,334

$11,824,206

$12,154,752

$12,425,129

$11,836,310

Portfolio

turnover

rate

................

4.29%

15.74%

14.12%

13.05%

19.37%

8.77%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

California

Tax-Free

Income

Fund

Financial

Highlights

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

11

a

Six

Months

Ended

September

30,

2020

(unaudited)

Year

Ended

March

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$7.47

$7.41

$7.30

$7.36

$7.58

$7.58

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.09

0.20

0.22

0.22

0.23

0.25

Net

realized

and

unrealized

gains

(losses)

0.20

0.07

0.11

(0.06)

(0.23)

(—)

c

Total

from

investment

operations

........

0.29

0.27

0.33

0.16

—

0.25

Less

distributions

from:

Net

investment

income

..............

(0.09)

(0.21)

(0.22)

(0.22)

(0.22)

(0.25)

Net

asset

value,

end

of

period

..........

$7.67

$7.47

$7.41

$7.30

$7.36

$7.58

Total

return

d

.......................

3.94%

3.57%

4.63%

2.23%

(0.02)%

3.39%

Ratios

to

average

net

assets

e

Expenses

.........................

1.15%

f

1.16%

f

1.16%

f

1.15%

1.14%

1.13%

Net

investment

income

...............

2.48%

2.57%

2.98%

2.97%

2.99%

3.31%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,067,099

$1,118,612

$1,124,954

$1,527,772

$1,659,070

$1,442,032

Portfolio

turnover

rate

................

4.29%

15.74%

14.12%

13.05%

19.37%

8.77%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Amount

rounds

to

less

than

$0.01

per

share.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

California

Tax-Free

Income

Fund

Financial

Highlights

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

12

a

Six

Months

Ended

September

30,

2020

(unaudited)

Year

Ended

March

31,

Period

Ended

March

31,

2018

a

2020

2019

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

..............................

$7.48

$7.42

$7.30

$7.46

Income

from

investment

operations

b

:

Net

investment

income

c

......................................

0.12

0.25

0.27

0.18

Net

realized

and

unrealized

gains

(losses)

........................

0.20

0.07

0.12

(0.18)

Total

from

investment

operations

.................................

0.32

0.32

0.39

—

Less

distributions

from:

Net

investment

income

.......................................

(0.12)

(0.26)

(0.27)

(0.16)

Net

asset

value,

end

of

period

...................................

$7.68

$7.48

$7.42

$7.30

Total

return

d

................................................

4.29%

4.28%

5.45%

(0.05)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

...................

0.47%

0.47%

0.47%

0.49%

Expenses

net

of

waiver

and

payments

by

affiliates

....................

0.46%

f

0.46%

f

0.46%

f

0.48%

Net

investment

income

........................................

3.16%

3.27%

3.68%

3.64%

Supplemental

data

Net

assets,

end

of

period

(000’s)

.................................

$231,041

$186,078

$103,760

$85,534

Portfolio

turnover

rate

.........................................

4.29%

15.74%

14.12%

13.05%

a

For

the

period

August

1,

2017

(effective

date)

to

March

31,

2018.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

California

Tax-Free

Income

Fund

Financial

Highlights

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

13

a

Six

Months

Ended

September

30,

2020

(unaudited)

Year

Ended

March

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$7.48

$7.42

$7.30

$7.36

$7.58

$7.59

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.12

0.24

0.26

0.27

0.28

0.30

Net

realized

and

unrealized

gains

(losses)

0.20

0.08

0.13

(0.06)

(0.23)

(0.01)

Total

from

investment

operations

........

0.32

0.32

0.39

0.21

0.05

0.29

Less

distributions

from:

Net

investment

income

..............

(0.12)

(0.26)

(0.27)

(0.27)

(0.27)

(0.30)

Net

asset

value,

end

of

period

..........

$7.68

$7.48

$7.42

$7.30

$7.36

$7.58

Total

return

c

.......................

4.27%

4.24%

5.44%

2.89%

0.65%

3.92%

Ratios

to

average

net

assets

d

Expenses

.........................

0.50%

e

0.51%

e

0.51%

e

0.50%

0.49%

0.48%

Net

investment

income

...............

3.13%

3.22%

3.63%

3.62%

3.64%

3.96%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$2,448,165

$1,888,402

$1,641,388

$1,572,721

$1,463,633

$1,108,743

Portfolio

turnover

rate

................

4.29%

15.74%

14.12%

13.05%

19.37%

8.77%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited),

September

30,

2020

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

14

a

a

Principal

Amount

a

Value

a

a

a

a

a

Commercial

Mortgage-Backed

Securities

0.4%

Diversified

Financial

Services

0.4%

California

Housing

Finance

,

2019-N

,

A

,

2.35

%

,

12/01/35

......................

$

9,884,178

$

10,293,679

FHLMC,

Multi-family

,

2019-ML06

,

ACA

,

2.493

%

,

7/25/35

......................

52,468,922

55,798,600

66,092,279

a

a

a

a

a

Total

Commercial

Mortgage-Backed

Securities

(Cost

$63,923,547)

................

66,092,279

Municipal

Bonds

97.9%

California

97.1%

ABAG

Finance

Authority

for

Nonprofit

Corp.

,

Asian

Americans

for

Community

Involvement

of

Santa

Clara

County,

Inc.

(The),

Revenue,

California

Mortgage

Insured,

6.65%,

10/01/22

...................

210,000

210,989

Eskaton

Properties,

Inc.

Obligated

Group,

Revenue,

2013,

Refunding,

5%,

11/15/35

10,000,000

10,478,500

MP

Palo

Alto

Gardens

Associates,

Revenue,

1999

A,

5.45%,

4/01/39

...........

5,500,000

5,509,130

Alameda

Corridor

Transportation

Authority

,

Revenue,

Sub.

Lien,

2004

A,

Refunding,

AMBAC

Insured,

Zero

Cpn.,

10/01/29

....

20,000,000

16,117,200

Revenue,

Sub.

Lien,

2004

A,

Refunding,

AMBAC

Insured,

Zero

Cpn.,

10/01/30

....

41,665,000

32,502,866

Alameda

Unified

School

District

,

GO

,

2015A

,

5

%

,

8/01/39

.....................

18,000,000

21,353,760

Alhambra

City

Elementary

School

District

,

Alhambra

Unified

School

District

,

GO

,

2004

B

,

NATL

Insured

,

Zero

Cpn.,

9/01/27

...................................

3,035,000

2,812,443

Alisal

Union

School

District

,

GO,

2009B,

AGMC

Insured,

Zero

Cpn.,

8/01/32

...........................

3,355,000

2,718,255

GO,

2009B,

AGMC

Insured,

Zero

Cpn.,

8/01/33

...........................

3,610,000

2,828,254

GO,

2009B,

AGMC

Insured,

Zero

Cpn.,

2/01/34

...........................

3,345,000

2,577,523

Alvord

Unified

School

District

,

GO,

2011B,

AGMC

Insured,

Zero

Cpn.,

8/01/36

...........................

15,000,000

9,855,150

GO,

2011B,

AGMC

Insured,

Zero

Cpn.,

8/01/46

...........................

42,500,000

54,689,000

GO,

A,

Pre-Refunded,

AGMC

Insured,

5%,

8/01/42

........................

34,690,000

39,398,127

Anaheim

City

School

District

,

GO

,

2011

,

Pre-Refunded

,

AGMC

Insured

,

6.25

%

,

8/01/40

7,500,000

7,882,200

Anaheim

Public

Financing

Authority

,

City

of

Anaheim,

Revenue,

1997

C,

AGMC

Insured,

Zero

Cpn.,

9/01/24

.........

26,855,000

25,988,121

City

of

Anaheim,

Revenue,

1997

C,

AGMC

Insured,

Zero

Cpn.,

9/01/26

.........

29,430,000

27,502,041

City

of

Anaheim,

Revenue,

1997

C,

AGMC

Insured,

Zero

Cpn.,

9/01/27

.........

22,860,000

20,894,497

City

of

Anaheim,

Revenue,

1997

C,

AGMC

Insured,

Zero

Cpn.,

9/01/28

.........

14,425,000

12,833,201

City

of

Anaheim,

Revenue,

1997

C,

AGMC

Insured,

Zero

Cpn.,

9/01/29

.........

24,810,000

21,475,040

City

of

Anaheim,

Revenue,

1997

C,

AGMC

Insured,

Zero

Cpn.,

9/01/32

.........

13,665,000

10,774,442

City

of

Anaheim,

Revenue,

1997

C,

AGMC

Insured,

Zero

Cpn.,

9/01/33

.........

37,070,000

28,279,591

City

of

Anaheim,

Revenue,

1997

C,

AGMC

Insured,

Zero

Cpn.,

9/01/34

.........

24,970,000

18,477,800

City

of

Anaheim,

Revenue,

1997

C,

AGMC

Insured,

ETM,

Zero

Cpn.,

3/01/37

.....

15,080,000

11,347,549

Anaheim

Union

High

School

District

,

GO

,

2002

A

,

AGMC

Insured

,

Zero

Cpn.,

8/01/26

8,570,000

8,114,933

Antelope

Valley

Community

College

District

,

GO

,

2015

,

Pre-Refunded

,

5

%

,

8/01/39

..

11,750,000

14,185,305

Atascadero

Unified

School

District

,

GO

,

A

,

AGMC

Insured

,

5

%

,

8/01/40

...........

6,235,000

6,438,012

Baldwin

Park

Unified

School

District

,

GO,

2013,

Pre-Refunded,

BAM

Insured,

5%,

8/01/43

.......................

5,000,000

5,678,600

GO,

2013,

Pre-Refunded,

BAM

Insured,

Zero

Cpn.,

8/01/48

..................

25,000,000

4,292,750

GO,

2013,

Pre-Refunded,

BAM

Insured,

Zero

Cpn.,

8/01/53

..................

60,000,000

7,010,400

Bay

Area

Toll

Authority

,

Revenue,

2013

S-4,

Pre-Refunded,

5%,

4/01/43

...........................

36,040,000

40,414,535

Revenue,

Pre-Refunded,

5.125%,

4/01/48

...............................

47,355,000

53,250,224

Revenue,

2013

S-4,

Pre-Refunded,

5.25%,

4/01/53

........................

33,000,000

37,211,130

Revenue,

2017

F-1,

5%,

4/01/56

......................................

60,000,000

69,842,400

Revenue,

2017

S-7,

Refunding,

4%,

4/01/42

.............................

84,260,000

95,317,440

Revenue,

2017

S-7,

Refunding,

4%,

4/01/47

.............................

72,000,000

80,824,320

Revenue,

2019

S-8,

Refunding,

5%,

4/01/56

.............................

25,000,000

29,918,250

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

15

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

Beaumont

Public

Improvement

Authority

,

City

of

Beaumont

Wastewater

,

Revenue

,

2018

A

,

AGMC

Insured

,

5

%

,

9/01/49

...................................

$

10,000,000

$

11,967,100

Beaumont

Unified

School

District

,

GO,

2011C,

Pre-Refunded,

AGMC

Insured,

5.75%,

8/01/36

..................

6,200,000

6,491,276

GO,

2011C,

AGMC

Insured,

Zero

Cpn.,

8/01/40

...........................

11,000,000

6,378,790

California

Community

College

Financing

Authority

,

Revenue,

2001

A,

NATL

Insured,

5.125%,

4/01/31

.........................

880,000

899,782

Revenue,

2010A,

AGMC

Insured,

5%,

6/01/30

............................

770,000

772,318

Revenue,

2010A,

AGMC

Insured,

5.125%,

6/01/35

.........................

360,000

361,004

NCCD-Orange

Coast

Properties

LLC,

Revenue,

2018,

5.25%,

5/01/53

..........

8,150,000

8,432,724

California

County

Tobacco

Securitization

Agency

,

Revenue,

2020

B-1,

Refunding,

5%,

6/01/49

.............................

1,000,000

1,160,290

Revenue,

Senior

Lien,

2020

A,

Refunding,

4%,

6/01/49

.....................

3,525,000

3,931,468

Alameda

County

Tobacco

Asset

Securitization

Corp.,

Revenue,

2002,

5.875%,

6/01/35

........................................................

7,355,000

7,361,987

Kern

County

Tobacco

Funding

Corp.,

Revenue,

2014,

Refunding,

5%,

6/01/34

....

10,295,000

10,705,359

Kern

County

Tobacco

Funding

Corp.,

Revenue,

2014,

Refunding,

5%,

6/01/40

....

17,650,000

18,453,251

a

Merced

County

Tobacco

Funding

Corp.,

Revenue,

Senior

Lien,

2020

A,

Refunding,

4%,

6/01/36

....................................................

470,000

543,884

a

Merced

County

Tobacco

Funding

Corp.,

Revenue,

Senior

Lien,

2020

A,

Refunding,

4%,

6/01/38

....................................................

530,000

609,161

a

Merced

County

Tobacco

Funding

Corp.,

Revenue,

Senior

Lien,

2020

A,

Refunding,

4%,

6/01/40

....................................................

625,000

713,488

a

Merced

County

Tobacco

Funding

Corp.,

Revenue,

Senior

Lien,

2020

A,

Refunding,

4%,

6/01/42

....................................................

100,000

112,146

a

Sonoma

County

Securitization

Corp.,

Revenue,

2020

A,

Refunding,

4%,

6/01/35

..

350,000

408,478

a

Sonoma

County

Securitization

Corp.,

Revenue,

2020

A,

Refunding,

4%,

6/01/36

..

300,000

347,160

a

Sonoma

County

Securitization

Corp.,

Revenue,

2020

A,

Refunding,

4%,

6/01/37

..

430,000

495,906

a

Sonoma

County

Securitization

Corp.,

Revenue,

2020

A,

Refunding,

4%,

6/01/38

..

500,000

574,680

a

Sonoma

County

Securitization

Corp.,

Revenue,

2020

A,

Refunding,

4%,

6/01/39

..

420,000

481,093

a

Sonoma

County

Securitization

Corp.,

Revenue,

2020

A,

Refunding,

4%,

6/01/40

..

500,000

570,790

a

Sonoma

County

Securitization

Corp.,

Revenue,

2020

A,

Refunding,

4%,

6/01/49

..

1,120,000

1,244,421

a

Sonoma

County

Securitization

Corp.,

Revenue,

2020

B

1,

Refunding,

5%,

6/01/49

.

1,000,000

1,139,710

Stanislaus

County

Tobacco

Funding

Corp.,

Revenue,

2002

A,

5.875%,

6/01/43

...

7,665,000

7,672,358

California

Educational

Facilities

Authority

,

Chapman

University,

Revenue,

2015,

5%,

4/01/45

.........................

10,000,000

11,207,400

Leland

Stanford

Junior

University

(The),

Revenue,

U-1,

5.25%,

4/01/40

.........

24,960,000

38,889,427

Leland

Stanford

Junior

University

(The),

Revenue,

U-3,

5%,

6/01/43

............

56,950,000

88,068,619

Leland

Stanford

Junior

University

(The),

Revenue,

U-4,

5%,

6/01/43

............

24,205,000

37,431,096

Leland

Stanford

Junior

University

(The),

Revenue,

U-6,

5%,

5/01/45

............

90,580,000

141,979,621

Leland

Stanford

Junior

University

(The),

Revenue,

V-1,

5%,

5/01/49

............

20,000,000

32,296,400

Loma

Linda

University,

Revenue,

2017A,

Refunding,

5%,

4/01/47

..............

11,000,000

12,372,580

Loyola

Marymount

University,

Revenue,

2001A,

NATL

Insured,

Zero

Cpn.,

10/01/26

7,620,000

7,122,109

Loyola

Marymount

University,

Revenue,

2001A,

NATL

Insured,

Zero

Cpn.,

10/01/27

7,365,000

6,729,769

Loyola

Marymount

University,

Revenue,

2001A,

NATL

Insured,

Zero

Cpn.,

10/01/28

4,120,000

3,663,545

Loyola

Marymount

University,

Revenue,

2001A,

NATL

Insured,

Zero

Cpn.,

10/01/30

5,685,000

4,776,366

Loyola

Marymount

University,

Revenue,

2001A,

NATL

Insured,

Zero

Cpn.,

10/01/31

7,615,000

6,220,770

Loyola

Marymount

University,

Revenue,

2001A,

NATL

Insured,

Zero

Cpn.,

10/01/32

7,615,000

6,017,145

Santa

Clara

University,

Revenue,

1999,

AMBAC

Insured,

Zero

Cpn.,

9/01/26

.....

4,500,000

3,812,310

Santa

Clara

University,

Revenue,

2015,

Refunding,

5%,

4/01/45

...............

15,495,000

18,086,694

University

of

San

Francisco,

Revenue,

2018A,

5%,

10/01/48

.................

10,000,000

11,955,900

University

of

San

Francisco,

Revenue,

2018A,

5%,

10/01/53

.................

10,000,000

11,905,500

California

Health

Facilities

Financing

Authority

,

Revenue,

1992

A,

California

Mortgage

Insured,

6.5%,

12/01/22

...............

390,000

392,005

Revenue,

2014A,

Pre-Refunded,

5%,

10/01/38

............................

3,890,000

4,636,452

Revenue,

2014A,

5%,

10/01/38

.......................................

5,110,000

5,770,979

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

16

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

California

Health

Facilities

Financing

Authority,

(continued)

California-Nevada

Methodist

Homes,

Revenue,

2015,

Refunding,

California

Mortgage

Insured,

5%,

7/01/35

..............................................

$

1,000,000

$

1,160,310

Casa

Milagro

LLC,

Revenue,

2011A,

California

Mortgage

Insured,

6.25%,

2/01/26

.

5,000,000

5,101,250

Children's

Hospital

Los

Angeles

Obligated

Group,

Revenue,

2017A,

Refunding,

5%,

8/15/42

........................................................

7,750,000

8,981,320

Children's

Hospital

Los

Angeles

Obligated

Group,

Revenue,

2017A,

Refunding,

5%,

8/15/47

........................................................

10,370,000

11,929,855

Children's

Hospital

of

Orange

County

Obligated

Group,

Revenue,

2011

A,

5.25%,

11/01/41

.......................................................

10,000,000

10,419,900

City

of

Hope

Obligated

Group,

Revenue,

2019,

5%,

11/15/49

.................

37,000,000

43,453,910

CommonSpirit

Health

Obligated

Group,

Revenue,

2011

A,

5.25%,

3/01/41

.......

50,000,000

50,836,500

El

Camino

Hospital,

Revenue,

2017,

4.125%,

2/01/47

......................

11,000,000

12,081,850

El

Camino

Hospital,

Revenue,

2017,

5%,

2/01/47

..........................

12,500,000

14,550,625

Kaiser

Foundation

Hospitals,

Revenue,

2017A-2,

4%,

11/01/38

...............

25,000,000

28,274,000

Kaiser

Foundation

Hospitals,

Revenue,

2017A-2,

4%,

11/01/44

...............

385,000,000

429,471,350

Kaiser

Foundation

Hospitals,

Revenue,

2017A-2,

5%,

11/01/47

...............

30,000,000

46,121,400

Lucile

Salter

Packard

Children's

Hospital

at

Stanford

Obligated

Group,

Revenue,

2012A,

5%,

8/15/51

..............................................

39,455,000

41,563,870

Lucile

Salter

Packard

Children's

Hospital

at

Stanford

Obligated

Group,

Revenue,

2016B,

5%,

8/15/55

..............................................

12,960,000

14,917,478

Lucile

Salter

Packard

Children's

Hospital

at

Stanford

Obligated

Group,

Revenue,

2017A,

5%,

11/15/56

..............................................

22,000,000

25,895,320

Marshall

Medical

Center,

Revenue,

2020A,

Refunding,

California

Mortgage

Insured,

4%,

11/01/40

...................................................

3,750,000

4,330,800

Marshall

Medical

Center,

Revenue,

2020A,

Refunding,

California

Mortgage

Insured,

5%,

11/01/50

...................................................

25,065,000

31,136,495

Rady

Children's

Hospital

Obligated

Group,

Revenue,

2011,

5.25%,

8/15/41

......

11,000,000

11,373,010

Sequoia

Living,

Inc.,

Revenue,

2015,

Refunding,

California

Mortgage

Insured,

5%,

7/01/34

........................................................

1,000,000

1,163,300

Sequoia

Living,

Inc.,

Revenue,

2015,

Refunding,

California

Mortgage

Insured,

5%,

7/01/39

........................................................

1,450,000

1,669,501

Sequoia

Living,

Inc.,

Revenue,

2015,

Refunding,

California

Mortgage

Insured,

5%,

7/01/44

........................................................

1,160,000

1,325,903

Stanford

Health

Care

Obligated

Group,

Revenue,

2020

A,

Refunding,

4%,

8/15/50

.

30,900,000

35,902,092

Sutter

Health

Obligated

Group,

Revenue,

2013A,

5%,

8/15/52

................

89,990,000

98,778,423

Sutter

Health

Obligated

Group,

Revenue,

2015A,

Refunding,

5%,

8/15/43

.......

20,000,000

23,216,400

Sutter

Health

Obligated

Group,

Revenue,

2016B,

Refunding,

5%,

11/15/46

.......

89,970,000

105,520,415

Sutter

Health

Obligated

Group,

Revenue,

2017

A,

Refunding,

4%,

11/15/48

......

36,810,000

40,819,713

Sutter

Health

Obligated

Group,

Revenue,

2018

A,

4%,

11/15/42

...............

11,680,000

13,059,525

Sutter

Health

Obligated

Group,

Revenue,

2018

A,

5%,

11/15/48

...............

34,500,000

41,208,180

California

Housing

Finance

,

Revenue,

2019-2,

A,

4%,

3/20/33

......................................

15,058,219

16,668,394

Longshore

Cove

LP,

Revenue,

2020

E,

FNMA

Insured,

2.5%,

2/01/38

..........

9,925,086

10,628,973

California

Infrastructure

&

Economic

Development

Bank

,

Revenue,

2015A,

Refunding,

5%,

10/01/40

..............................

4,015,000

4,800,776

Revenue,

2015A,

Refunding,

5%,

10/01/43

..............................

1,900,000

2,263,660

Revenue,

2018,

5%,

10/01/48

........................................

10,000,000

12,499,100

Academy

of

Motion

Picture

Arts

and

Sciences

Obligated

Group,

Revenue,

2015A,

Refunding,

5%,

11/01/41

...........................................

8,000,000

8,882,960

Academy

of

Motion

Picture

Arts

and

Sciences

Obligated

Group,

Revenue,

2020B,

Refunding,

5%,

11/01/29

...........................................

5,000,000

6,611,600

California

State

Teachers'

Retirement

System,

Revenue,

2019,

5%,

8/01/44

......

8,000,000

10,037,120

California

State

Teachers'

Retirement

System,

Revenue,

2019,

5%,

8/01/49

......

30,300,000

37,746,225

Equitable

School

Revolving

Fund

LLC

Obligated

Group,

Revenue,

2020

B,

4%,

11/01/45

.......................................................

850,000

971,771

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

17

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

California

Infrastructure

&

Economic

Development

Bank,

(continued)

Equitable

School

Revolving

Fund

LLC

Obligated

Group,

Revenue,

2020

B,

4%,

11/01/50

.......................................................

$

860,000

$

979,970

Equitable

School

Revolving

Fund

LLC

Obligated

Group,

Revenue,

2020

B,

4%,

11/01/55

.......................................................

915,000

1,033,986

Los

Angeles

County

Museum

of

Natural

History

Foundation,

Revenue,

2020,

Refunding,

3%,

7/01/50

............................................

18,995,000

19,207,174

Los

Angeles

County

Museum

of

Natural

History

Foundation,

Revenue,

2020,

Refunding,

4%,

7/01/50

............................................

10,000,000

11,255,500

State

of

California

Department

of

Transportation

Seismic

Surcharge,

Revenue,

First

Lien,

2003

A,

Pre-Refunded,

FGIC

Insured,

5%,

7/01/29

...................

50,985,000

66,696,028

State

of

California

Department

of

Transportation

Seismic

Surcharge,

Revenue,

First

Lien,

2003

A,

Pre-Refunded,

AMBAC

Insured,

5%,

7/01/33

.................

13,460,000

17,946,353

California

Municipal

Finance

Authority

,

4.25%,

1/15/35

...................................................

49,499,195

55,899,935

Revenue,

Senior

Lien,

2017A,

Refunding,

4%,

8/15/52

......................

27,350,000

28,948,608

Channing

House,

Revenue,

2017B,

California

Mortgage

Insured,

5%,

5/15/47

....

10,000,000

11,777,400

CHF-Davis

I

LLC,

Revenue,

2018,

5%,

5/15/51

...........................

10,000,000

11,509,200

Community

Hospitals

of

Central

California

Obligated

Group,

Revenue,

2015A,

Refunding,

5%,

2/01/46

............................................

15,000,000

16,550,250

Community

Hospitals

of

Central

California

Obligated

Group,

Revenue,

2017A,

Refunding,

5%,

2/01/42

............................................

5,500,000

6,334,625

Community

Hospitals

of

Central

California

Obligated

Group,

Revenue,

2017A,

Refunding,

5%,

2/01/47

............................................

20,750,000

23,718,910

Eisenhower

Medical

Center,

Revenue,

2017A,

Refunding,

5%,

7/01/42

..........

5,100,000

5,813,439

Eisenhower

Medical

Center,

Revenue,

2017A,

Refunding,

5%,

7/01/47

..........

4,000,000

4,526,080

Inland

Christian

Home,

Inc.,

Revenue,

2020,

California

Mortgage

Insured,

4%,

12/01/49

.......................................................

2,670,000

3,016,860

Inland

Counties

Regional

Center,

Inc.,

Revenue,

2015,

Refunding,

5%,

6/15/45

...

23,300,000

27,201,119

LAX

Integrated

Express

Solutions

LLC,

Revenue,

Senior

Lien,

2018

A,

5%,

12/31/37

5,000,000

5,802,000

LAX

Integrated

Express

Solutions

LLC,

Revenue,

Senior

Lien,

2018

A,

5%,

12/31/43

11,800,000

13,481,618

LAX

Integrated

Express

Solutions

LLC,

Revenue,

Senior

Lien,

2018

A,

5%,

12/31/47

61,850,000

70,297,473

Northbay

Healthcare

Group

Obligated

Group,

Revenue,

2017

A,

5.25%,

11/01/41

..

5,500,000

6,267,525

Northbay

Healthcare

Group

Obligated

Group,

Revenue,

2017

A,

5%,

11/01/47

....

8,650,000

9,580,913

Northern

California

Retired

Officers

Community,

Revenue,

2019

A,

California

Mortgage

Insured,

5%,

1/01/43

......................................

10,000,000

11,981,300

Northern

California

Retired

Officers

Community,

Revenue,

2019

A,

California

Mortgage

Insured,

5%,

1/01/49

......................................

18,990,000

22,589,175

South

Central

Los

Angeles

Regional

Center

for

Developmentally

Disabled

Persons,

Revenue,

2013,

5.75%,

12/01/43

....................................

33,895,000

37,228,912

University

of

La

Verne,

Revenue,

2017A,

Refunding,

4%,

6/01/47

..............

10,500,000

11,312,280

California

Pollution

Control

Financing

Authority

,

b

San

Diego

County

Water

Authority,

Revenue,

144A,

2019,

Refunding,

5%,

7/01/39

.

7,250,000

8,446,033

b

San

Diego

County

Water

Authority,

Revenue,

144A,

2019,

Refunding,

5%,

11/21/45

1,905,000

2,191,969

San

Jose

Water

Co.,

Revenue,

2016,

4.75%,

11/01/46

......................

15,000,000

17,032,500

California

Public

School

District

Financing

Authority

,

Southern

Kern

Unified

School

District

,

Revenue

,

1996B

,

AGMC

Insured

,

ETM,

5.9

%

,

9/01/26

................

1,165,000

1,378,673

California

State

Public

Works

Board

,

Revenue,

2012

A,

5%,

4/01/31

........................................

48,070,000

51,250,792

Revenue,

2012

A,

5%,

4/01/32

........................................

17,885,000

19,054,679

Revenue,

2012

A,

5%,

4/01/37

........................................

29,000,000

30,797,710

Revenue,

2012G,

Refunding,

5%,

11/01/31

..............................

16,520,000

18,019,355

Revenue,

2013I,

5%,

11/01/38

........................................

40,000,000

44,970,000

Judicial

Council

of

California,

Revenue,

2011

D,

5%,

12/01/31

................

15,000,000

15,794,550

California

State

University

,

Revenue,

2011

A,

Pre-Refunded,

5%,

11/01/42

...........................

29,645,000

31,193,358

Revenue,

2014A,

Refunding,

5%,

11/01/39

...............................

23,000,000

26,950,250

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

18

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

California

State

University,

(continued)

Revenue,

2014A,

Refunding,

5%,

11/01/44

...............................

$

32,345,000

$

37,658,960

Revenue,

2015A,

Refunding,

5%,

11/01/43

...............................

11,000,000

13,205,280

Revenue,

2017A,

Refunding,

5%,

11/01/42

...............................

29,105,000

35,613,751

Revenue,

2017A,

Refunding,

5%,

11/01/47

...............................

63,000,000

76,559,490

Revenue,

2018

A,

Refunding,

5%,

11/01/39

..............................

19,920,000

25,403,777

Revenue,

2018

A,

Refunding,

5%,

11/01/43

..............................

16,870,000

21,298,544

Revenue,

2018

A,

Refunding,

5%,

11/01/50

..............................

17,385,000

21,742,203

Revenue,

2019

A,

5%,

11/01/44

.......................................

13,100,000

16,650,755

Revenue,

2019

A,

5%,

11/01/49

.......................................

90,295,000

113,964,931

Revenue,

2019

A,

5%,

11/01/51

.......................................

40,470,000

50,999,080

Revenue,

2020C,

4%,

11/01/45

.......................................

10,000,000

11,765,600

California

Statewide

Communities

Development

Authority

,

Revenue,

2004

A,

Pre-Refunded,

AGMC

Insured,

5.25%,

10/01/24

.............

275,000

276,108

Adventist

Health

System/West

Obligated

Group,

Revenue,

2015A,

Refunding,

5%,

3/01/35

........................................................

9,250,000

10,957,273

Adventist

Health

System/West

Obligated

Group,

Revenue,

2018

A,

Refunding,

5%,

3/01/48

........................................................

67,585,000

80,509,955

CHF-Irvine

LLC,

Revenue,

2011,

Refunding,

5.125%,

5/15/31

................

8,000,000

8,148,400

CHF-Irvine

LLC,

Revenue,

2011,

Refunding,

5.375%,

5/15/38

................

8,500,000

8,650,110

Collis

P

and

Howard

Huntington

Memorial

Hospital

Obligated

Group,

Revenue,

2018,

5%,

7/01/48

....................................................

7,980,000

9,479,043

Community

Church

Retirement

Center,

Revenue,

2013,

California

Mortgage

Insured,

5.125%,

11/15/35

................................................

2,000,000

2,267,040

Community

Church

Retirement

Center,

Revenue,

2013,

California

Mortgage

Insured,

5.375%,

11/15/44

................................................

7,250,000

8,111,518

Cottage

Health

Obligated

Group,

Revenue,

2010,

Pre-Refunded,

5.25%,

11/01/30

.

18,500,000

18,576,775

Cottage

Health

Obligated

Group,

Revenue,

2010,

Pre-Refunded,

5%,

11/01/40

...

56,000,000

56,221,200

Emanate

Health

Obligated

Group,

Revenue,

2020

A,

3%,

4/01/50

.............

10,000,000

10,120,000

Henry

Mayo

Newhall

Memorial

Hospital,

Revenue,

2014,

AGMC

Insured,

5.25%,

10/01/43

.......................................................

3,000,000

3,351,900

Kaiser

Foundation

Hospitals,

Revenue,

2012

A,

5%,

4/01/42

.................

88,945,000

93,364,677

Olive

Street

Preservation

LP,

Revenue,

2009L,

GNMA

Insured,

5.1%,

7/20/50

....

10,000,000

10,111,300

Poway

RHF

Housing,

Inc.,

Revenue,

2013A,

California

Mortgage

Insured,

5.25%,

11/15/35

.......................................................

2,000,000

2,226,100

UniHealth

Foundation,

COP,

1993-A,

Pre-Refunded,

AMBAC

Insured,

5.75%,

10/01/25

.......................................................

4,540,000

4,728,955

Campbell

Union

School

District

,

GO

,

1996B

,

NATL

Insured

,

Zero

Cpn.,

8/01/21

.....

6,280,000

6,261,788

Carlsbad

Unified

School

District

,

GO,

2009B,

Refunding,

6%,

5/01/34

....................................

14,000,000

16,834,300

GO,

2011C,

Zero

Cpn.,

8/01/35

.......................................

33,000,000

39,949,470

Castro

Valley

Unified

School

District

,

COP

,

2011

,

AGMC

Insured

,

5

%

,

9/01/32

......

2,620,000

2,707,639

Centinela

Valley

Union

High

School

District

,

GO,

2004

A,

Refunding,

NATL

Insured,

5.5%,

8/01/33

......................

15,630,000

20,315,874

GO,

2012

B,

Refunding,

AGMC

Insured,

5%,

8/01/50

.......................

3,850,000

4,180,061

Cerritos

Public

Financing

Authority

,

Tax

Allocation

,

2002

A

,

AMBAC

Insured

,

5

%

,

11/01/22

........................................................

1,675,000

1,680,595

Chaffey

Joint

Union

High

School

District

,

GO

,

B

,

5

%

,

8/01/44

..................

27,500,000

31,910,175

Charter

Oak

Unified

School

District

,

GO

,

2015A

,

AGMC

Insured

,

5

%

,

8/01/40

......

5,000,000

5,903,150

Chico

Unified

School

District

,

GO

,

2012

A

,

5

%

,

8/01/43

.......................

8,000,000

8,868,960

Chino

Valley

Unified

School

District

,

GO,

2020

B,

4%,

8/01/45

............................................

3,000,000

3,531,300

GO,

2020

B,

3.375%,

8/01/50

.........................................

20,500,000

22,488,295

GO,

2020

B,

5%,

8/01/55

............................................

12,500,000

15,974,250

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

19

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

City

&

County

of

San

Francisco

,

Eastern

Park

Apartments

LP

,

Revenue

,

2019J

,

FNMA

Insured

,

2.55

%

,

7/01/39

.............................................

$

56,506,000

$

58,349,226

City

of

Chula

Vista

,

San

Diego

Gas

&

Electric

Co.

,

Revenue

,

2004-A

,

Refunding

,

5.875

%

,

2/15/34

...................................................

17,500,000

17,565,625

City

of

Long

Beach

,

Harbor,

Revenue,

2017C,

Refunding,

5%,

5/15/47

.........................

12,210,000

14,402,306

Harbor,

Revenue,

2019A,

5%,

5/15/49

..................................

18,205,000

22,264,897

City

of

Los

Angeles

,

Revenue,

1993-1,

Refunding,

NATL,

FHA

Insured,

6.5%,

7/01/22

..............

155,000

155,653

Department

of

Airports,

Revenue,

2015D,

5%,

5/15/41

......................

14,500,000

16,637,735

Department

of

Airports,

Revenue,

2016B,

5%,

5/15/41

......................

12,500,000

14,403,375

Department

of

Airports,

Revenue,

2016B,

5%,

5/15/46

......................

53,000,000

60,606,030

Department

of

Airports,

Revenue,

2017A,

5%,

5/15/47

......................

50,350,000

58,544,966

Department

of

Airports,

Revenue,

2018

A,

5%,

5/15/44

......................

60,000,000

71,113,200

Department

of

Airports,

Revenue,

2018

C,

5%,

5/15/37

.....................

9,550,000

11,446,821

Department

of

Airports,

Revenue,

2018

E,

Refunding,

5%,

5/15/43

.............

15,005,000

18,404,683

Department

of

Airports,

Revenue,

2018

E,

Refunding,

5%,

5/15/48

.............

33,145,000

40,326,859

Department

of

Airports,

Revenue,

2019

A,

Refunding,

5%,

5/15/49

.............

10,000,000

11,943,500

Department

of

Airports,

Revenue,

2019

E,

5%,

5/15/44

......................

22,135,000

26,973,268

Department

of

Airports,

Revenue,

2019

E,

5%,

5/15/49

......................

62,940,000

76,178,170

Department

of

Airports,

Revenue,

2019

F,

5%,

5/15/44

......................

2,950,000

3,548,466

Department

of

Airports,

Revenue,

2020

A,

Refunding,

5%,

5/15/35

.............

10,500,000

13,450,815

Department

of

Airports,

Revenue,

2020

A,

Refunding,

5%,

5/15/37

.............

8,000,000

10,156,800

Department

of

Airports,

Revenue,

2020

A,

Refunding,

5%,

5/15/38

.............

9,925,000

12,559,095

Department

of

Airports,

Revenue,

2020

A,

Refunding,

5%,

5/15/39

.............

10,265,000

12,948,682

Department

of

Airports,

Revenue,

2020

A,

Refunding,

5%,

5/15/40

.............

10,000,000

12,576,900

Department

of

Airports,

Revenue,

Senior

Lien,

2020C,

5%,

5/15/45

............

50,000,000

61,151,000

Department

of

Airports,

Revenue,

Senior

Lien,

2020C,

4%,

5/15/50

............

35,000,000

39,189,500

Wastewater

System,

Revenue,

2015-A,

5%,

6/01/44

.......................

9,000,000

10,589,850

Wastewater

System,

Revenue,

2015-C,

Refunding,

5%,

6/01/45

...............

24,690,000

29,014,700

Wastewater

System,

Revenue,

2018A,

5%,

6/01/48

........................

11,275,000

13,989,118

City

of

Pasadena

,

Electric

,

Revenue

,

2016A

,

Refunding

,

4

%

,

6/01/46

............

22,625,000

25,028,001

City

of

Perris

,

Revenue

,

1988A

,

GNMA

Insured

,

ETM,

Zero

Cpn.,

6/01/23

.........

19,095,000

18,737,924

City

of

Riverside

,

Electric,

Revenue,

2013A,

Refunding,

5%,

10/01/43

........................

11,535,000

12,972,030

Sewer,

Revenue,

2015A,

Refunding,

5%,

8/01/40

..........................

25,000,000

29,853,500

City

of

Roseville

,

Electric

System

,

COP

,

2004

,

AGMC

Insured

,

5

%

,

2/01/34

........

5,000

5,017

City

of

Sacramento

,

Transient

Occupancy

Tax,

Revenue,

2018

A,

5%,

6/01/43

....................

6,035,000

6,697,703

Transient

Occupancy

Tax,

Revenue,

2018

A,

5%,

6/01/48

....................

19,830,000

21,878,241

Transient

Occupancy

Tax,

Revenue,

2018

C,

5%,

6/01/48

...................

9,415,000

10,367,422

Water,

Revenue,

2013,

Pre-Refunded,

5%,

9/01/38

........................

21,630,000

24,685,886

City

of

San

Francisco

,

Public

Utilities

Commission

Water,

Revenue,

2012

A,

Pre-Refunded,

5%,

11/01/36

.

23,490,000

25,303,428

Public

Utilities

Commission

Water,

Revenue,

2012

A,

Pre-Refunded,

5%,

11/01/43

.

71,735,000

77,272,942

Public

Utilities

Commission

Water,

Revenue,

2020A,

5%,

11/01/50

.............

35,000,000

45,203,900

Public

Utilities

Commission

Water,

Revenue,

ABCD

2011A,

Pre-Refunded,

5%,

11/01/41

.......................................................

5,800,000

6,106,182

City

of

San

Jose

,

Hotel

Tax,

Special

Tax,

2011,

6.5%,

5/01/36

..............................

10,000,000

10,153,100

Hotel

Tax,

Special

Tax,

2011,

6.5%,

5/01/42

..............................

10,000,000

10,126,600

City

of

Upland

,

San

Antonio

Regional

Hospital

Obligated

Group,

COP,

Pre-Refunded,

6.5%,

1/01/41

34,130,000

34,619,424

San

Antonio

Regional

Hospital

Obligated

Group,

COP,

Refunding,

5%,

1/01/47

...

14,400,000

16,125,840

Coachella

Valley

Unified

School

District

,

GO,

C,

AGMC

Insured,

Zero

Cpn.,

8/01/36

...............................

8,000,000

5,661,920

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

20

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

Coachella

Valley

Unified

School

District,

(continued)

GO,

C,

AGMC

Insured,

Zero

Cpn.,

8/01/37

...............................

$

8,000,000

$

5,477,920

GO,

C,

AGMC

Insured,

Zero

Cpn.,

8/01/40

...............................

7,500,000

4,658,625

GO,

C,

AGMC

Insured,

Zero

Cpn.,

8/01/43

...............................

10,000,000

5,379,400

Coalinga-Huron

Joint

Unified

School

District

,

GO

,

B

,

BAM

Insured

,

5

%

,

8/01/48

.....

13,210,000

15,676,439

Colton

Joint

Unified

School

District

,

GO

,

2010B

,

AGMC

Insured

,

Zero

Cpn.,

8/01/42

.

16,365,000

8,675,741

Compton

Community

Redevelopment

Agency

,

Tax

Allocation,

Second

Lien,

2010B,

5.7%,

8/01/30

.........................

10,000,000

10,032,600

Tax

Allocation,

Second

Lien,

2010B,

6%,

8/01/35

..........................

11,160,000

11,194,038

Tax

Allocation,

Second

Lien,

2010B,

6%,

8/01/42

..........................

10,000,000

10,028,500

Corona-Norco

Unified

School

District

,

GO,

1998

B,

AGMC

Insured,

Zero

Cpn.,

9/01/23

...........................

2,320,000

2,286,894

GO,

1998

B,

AGMC

Insured,

Zero

Cpn.,

9/01/24

...........................

2,620,000

2,558,273

GO,

1998

B,

AGMC

Insured,

Zero

Cpn.,

3/01/25

...........................

1,400,000

1,358,364

GO,

1998

C,

NATL

Insured,

Zero

Cpn.,

9/01/25

...........................

4,655,000

4,473,408

GO,

1998

C,

NATL

Insured,

Zero

Cpn.,

9/01/26

...........................

6,080,000

5,738,790

GO,

A,

Pre-Refunded,

5%,

8/01/44

.....................................

20,000,000

24,461,400

County

of

Madera

,

Childrens

Hospital

Central

California

Obligated

Group,

COP,

1995,

NATL

Insured,

5.75%,

3/15/28

..................................................

27,500,000

27,600,100

Childrens

Hospital

Central

California

Obligated

Group,

COP,

1998,

NATL

Insured,

5%,

3/15/23

....................................................

5,345,000

5,390,272

County

of

Riverside

,

Revenue,

1988

A,

GNMA

Insured,

ETM,

Zero

Cpn.,

11/01/20

.................

25,055,000

25,041,220

Revenue,

1988

B,

GNMA

Insured,

ETM,

Zero

Cpn.,

6/01/23

..................

26,160,000

25,773,093

County

of

Sacramento

,

Airport

System,

Revenue,

2016B,

Refunding,

5%,

7/01/41

...................

9,000,000

10,444,140

Airport

System,

Revenue,

Senior

Lien,

2016A,

Refunding,

5%,

7/01/41

..........

10,000,000

11,651,800

County

of

San

Bernardino

,

Revenue

,

1989

A

,

GNMA

Insured

,

ETM,

Zero

Cpn.,

5/01/22

6,045,000

5,665,011

Covina

Public

Financing

Authority

,

Revenue

,

2010

,

AGMC

Insured

,

5.5

%

,

10/01/40

..

3,500,000

3,513,720

Daly

City

Housing

Development

Finance

Agency

,

Franciscan

Park

LLC

,

Revenue

,

2007

A

,

Refunding

,

5

%

,

12/15/47

..........................................

17,870,000

17,917,892

Delano

Joint

Union

High

School

District

,

GO

,

2003

A

,

Refunding

,

NATL

Insured

,

5.15

%

,

2/01/32

.........................................................

8,520,000

10,974,612

Delano

Union

School

District

,

COP

,

1999

,

NATL

Insured

,

5.125

%

,

1/01/22

.........

695,000

716,295

East

Bay

Municipal

Utility

District

,

Water

System,

Revenue,

2014A,

Refunding,

5%,

6/01/35

....................

10,000,000

11,633,500

Water

System,

Revenue,

2014C,

5%,

6/01/44

............................

14,000,000

16,132,340

Water

System,

Revenue,

2015A,

Refunding,

5%,

6/01/36

....................

7,355,000

8,765,101

Water

System,

Revenue,

2015C,

4%,

6/01/45

............................

9,070,000

10,004,935

Water

System,

Revenue,

2019

A,

5%,

6/01/44

............................

4,000,000

5,150,760

Water

System,

Revenue,

2019

A,

5%,

6/01/49

............................

11,700,000

14,958,099

Eastern

Municipal

Water

District

Financing

Authority

,

Revenue

,

2015B

,

5

%

,

7/01/46

.

30,705,000

36,417,358

El

Dorado

Irrigation

District

,

COP,

2020

A,

4%,

3/01/45

...........................................

5,000,000

5,865,600

COP,

2020

A,

4%,

3/01/50

...........................................

15,330,000

17,814,533

Elk

Grove

Finance

Authority

,

Special

Tax

,

2015

,

Refunding

,

BAM

Insured

,

5

%

,

9/01/38

1,500,000

1,749,225

Fairfax

Elementary

School

District

,

GO,

2010,

Pre-Refunded,

AGMC

Insured,

5.75%,

11/01/40

..................

2,250,000

2,385,743

GO,

2010,

AGMC

Insured,

Zero

Cpn.,

11/01/48

...........................

10,380,000

4,145,772

Folsom

Cordova

Unified

School

District

School

Facilities

Improvement

Dist

No.

5

,

GO

,

C

,

4

%

,

10/01/43

...................................................

17,500,000

20,284,250

Foothill-Eastern

Transportation

Corridor

Agency

,

Revenue,

2013

A,

Refunding,

AGMC

Insured,

5%,

1/15/42

...................

10,000,000

11,016,500

Revenue,

2013

A,

Refunding,

5.75%,

1/15/46

.............................

260,000,000

288,249,000

Revenue,

2013

A,

Pre-Refunded,

6%,

1/15/49

............................

305,000,000

362,910,350

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

21

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

Foothill-Eastern

Transportation

Corridor

Agency,

(continued)

Revenue,

2013

A,

Pre-Refunded,

6%,

1/15/53

............................

$

190,000,000

$

226,075,300

Revenue,

2013

A,

Refunding,

AGMC

Insured,

Zero

Cpn.,

1/15/31

..............

35,000,000

41,520,850

Revenue,

2013

A,

Refunding,

AGMC

Insured,

0%,

1/15/32

...................

37,260,000

44,193,713

Revenue,

2013

A,

Refunding,

AGMC

Insured,

Zero

Cpn.,

1/15/37

..............

41,250,000

25,858,387

Revenue,

2013

A,

Refunding,

AGMC

Insured,

Zero

Cpn.,

1/15/38

..............

77,650,000

46,782,572

Revenue,

2013

A,

Refunding,

AGMC

Insured,

Zero

Cpn.,

1/15/39

..............

56,100,000

32,516,121

Revenue,

Refunding,

Zero

Cpn.,

1/15/42

................................

228,000,000

174,818,620

Revenue,

Senior

Lien,

1995

A,

ETM,

Zero

Cpn.,

1/01/22

....................

30,835,000

30,727,694

Revenue,

Senior

Lien,

1995

A,

ETM,

Zero

Cpn.,

1/01/23

....................

5,765,000

5,718,592

Revenue,

Senior

Lien,

1995

A,

ETM,

Zero

Cpn.,

1/01/24

....................

72,045,000

71,093,286

Revenue,

Senior

Lien,

1995

A,

ETM,

Zero

Cpn.,

1/01/25

....................

20,660,000

20,217,876

Revenue,

Senior

Lien,

1995

A,

ETM,

Zero

Cpn.,

1/01/26

....................

23,475,000

22,796,103

Revenue,

Senior

Lien,

1995

A,

ETM,

Zero

Cpn.,

1/01/27

....................

15,000,000

14,413,050

Revenue,

Senior

Lien,

1995

A,

ETM,

Zero

Cpn.,

1/01/28

....................

2,000,000

1,902,620

Revenue,

Senior

Lien,

1995

A,

ETM,

Zero

Cpn.,

1/01/29

....................

35,310,000

32,361,615

Fort

Bragg

Unified

School

District

,

GO

,

2011

,

Pre-Refunded

,

AGMC

Insured

,

5.125

%

,

8/01/41

.........................................................

4,380,000

4,563,040

Fowler

Unified

School

District

,

GO,

2010C,

AGMC

Insured,

Zero

Cpn.,

8/01/41

...........................

3,095,000

1,886,248

GO,

2010C,

AGMC

Insured,

Zero

Cpn.,

8/01/42

...........................

3,005,000

1,766,219

Franklin-Mckinley

School

District

,

GO

,

C

,

Pre-Refunded

,

BAM

Insured

,

5

%

,

8/01/44

.

5,000,000

5,686,200

Fresno

Unified

School

District

,

GO,

1999C,

Refunding,

NATL

Insured,

5.9%,

8/01/22

.......................

3,000,000

3,153,720

GO,

B,

Refunding,

Zero

Cpn.,

8/01/41

..................................

35,000,000

8,811,600

GO,

G,

Refunding,

Zero

Cpn.,

8/01/41

..................................

47,000,000

11,832,720

Fullerton

School

District

,

GO

,

2002

A

,

NATL

Insured

,

Zero

Cpn.,

8/01/23

..........

3,030,000

2,989,004

Fullerton

School

District

Financing

Authority

,

Special

Tax,

Senior

Lien

,

2013

A

,

Refunding

,

AGMC

Insured

,

5

%

,

9/01/31

.................................

2,500,000

2,771,150

Glendale

Community

College

District

,

GO,

2003

C,

NATL

Insured,

Zero

Cpn.,

8/01/28

...........................

15,000,000

12,029,700

GO,

2016B,

4%,

8/01/50

............................................

34,950,000

40,647,898

Glendora

Public

Finance

Authority

,

Glendora

Community

Redevelopment

Agency

,

Tax

Allocation

,

2003

A

,

NATL

Insured

,

5

%

,

9/01/24

............................

3,715,000

3,727,037

Golden

State

Tobacco

Securitization

Corp.

,

Revenue,

2015A,

Refunding,

5%,

6/01/35

...............................

25,000,000

29,261,500

Revenue,

2015A,

Refunding,

5%,

6/01/40

...............................

212,525,000

246,329,226

Revenue,

2015A,

Refunding,

5%,

6/01/45

...............................

308,395,000

354,854,707

Revenue,

2018A-1,

Refunding,

5%,

6/01/35

..............................

28,340,000

34,169,255

Grossmont

Union

High

School

District

,

GO

,

2004

,

AGMC

Insured

,

Zero

Cpn.,

8/01/24

5,110,000

5,010,304

Grossmont-Cuyamaca

Community

College

District

,

GO

,

2018

B

,

4

%

,

8/01/47

......

10,000,000

11,486,300

Hacienda

La

Puente

Unified

School

District

,

GO

,

2017A

,

4

%

,

8/01/47

............

655,000

740,726

Hartnell

Community

College

District

,

GO

,

2009C

,

0

%

,

8/01/33

..................

20,000,000

26,981,600

Hawthorne

School

District

,

GO

,

2008-C

,

AGMC

Insured

,

Zero

Cpn.,

8/01/48

.......

37,665,000

14,879,935

Hayward

Unified

School

District

,

GO

,

2020

,

AGMC

Insured

,

4

%

,

8/01/45

..........

10,000,000

11,606,200

Huntington

Beach

City

School

District

,

GO

,

2003

A

,

NATL

Insured

,

Zero

Cpn.,

8/01/28

10,005,000

8,564,980

Huntington

Beach

Union

High

School

District

,

COP

,

2010

,

AGMC

Insured

,

5.25

%

,

9/01/39

.........................................................

2,000,000

2,005,720

Irvine

Unified

School

District

,

Special

Tax,

2020

A,

4%,

9/01/40

......................................

2,960,000

3,381,504

Special

Tax,

2020

A,

4%,

9/01/44

......................................

6,250,000

7,049,625

Special

Tax,

2020

A,

BAM

Insured,

4%,

9/01/50

...........................

8,000,000

9,154,080

Special

Tax,

2020

A,

BAM

Insured,

4%,

9/01/54

...........................

12,285,000

14,010,551

Community

Facilities

District

No.

01-1,

Special

Tax,

2015,

Refunding,

BAM

Insured,

5%,

9/01/38

....................................................

7,000,000

8,007,160

Community

Facilities

District

No.

09-1,

Special

Tax,

2017

D,

5%,

3/01/57

........

10,000,000

11,516,300

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

Jefferson

Union

High

School

District

,

GO,

2000A,

Refunding,

NATL

Insured,

6.45%,

8/01/25

......................

$

3,045,000

$

3,501,354

GO,

2000A,

Refunding,

NATL

Insured,

6.45%,

8/01/29

......................

3,075,000

4,135,106

Jurupa

Public

Financing

Authority

,

Special

Tax,

2013

A,

AGMC

Insured,

5.125%,

9/01/37

......................

4,000,000

4,418,280

Special

Tax,

2013

A,

AGMC

Insured,

5.25%,

9/01/42

.......................

3,250,000

3,581,273

Jurupa

Unified

School

District

,

GO

,

2015A

,

5

%

,

8/01/39

......................

10,165,000

12,037,901

La

Mirada

Redevelopment

Agency

Successor

Agency

,

Tax

Allocation

,

2010A

,

Refunding

,

AGMC

Insured

,

5

%

,

8/15/28

.................................

1,855,000

1,861,122

La

Palma

Community

Development

Commission

,

Tax

Allocation

,

1993

,

Refunding

,

6.1

%

,

6/01/22

....................................................

145,000

145,771

Lake

Elsinore

Unified

School

District

,

GO

,

B

,

BAM

Insured

,

4

%

,

8/01/49

..........

12,330,000

13,833,274

Lakeside

Union

School

District

,

GO

,

2010B

,

Zero

Cpn.,

8/01/45

.................

11,540,000

5,656,908

Lammersville

Joint

Unified

School

District

,

GO

,

2016A

,

4

%

,

8/01/46

.............

41,340,000

46,035,397

Lancaster

School

District

,

GO,

1999,

NATL

Insured,

Zero

Cpn.,

8/01/25

.............................

5,495,000

5,275,585

GO,

1999,

NATL

Insured,

Zero

Cpn.,

7/01/26

.............................

5,965,000

5,630,423

Lawndale

Redevelopment

Agency

,

Tax

Allocation,

2009,

AGMC

Insured,

5.5%,

8/01/39

........................

10,280,000

10,322,354

Tax

Allocation,

2009,

AGMC

Insured,

5.5%,

8/01/44

........................

6,085,000

6,109,948

Lemon

Grove

School

District

,

GO

,

2010B

,

AGMC

Insured

,

Zero

Cpn.,

8/01/50

......

20,990,000

8,717,147

Local

Public

Schools

Funding

Authority

School

Improvement

District

No.

2016-1

,

GO

,

2020

A

,

BAM

Insured

,

3

%

,

8/01/46

.....................................

13,060,000

13,634,640

Lodi

Unified

School

District

,

GO

,

2017

,

4

%

,

8/01/41

..........................

15,000,000

17,131,050

Long

Beach

Bond

Finance

Authority

,

Revenue,

2007A,

5.5%,

11/15/28

......................................

8,000,000

10,377,200

Revenue,

2007A,

5%,

11/15/29

.......................................

17,465,000

22,256,348

Revenue,

2007A,

5.5%,

11/15/30

......................................

5,000,000

6,682,950

Revenue,

2007A,

5%,

11/15/35

.......................................

69,855,000

94,735,954

Revenue,

2007A,

5.5%,

11/15/37

......................................

35,000,000

50,676,500

Los

Angeles

Community

College

District

,

GO

,

2016

,

Refunding

,

5

%

,

8/01/38

.......

10,000,000

12,128,500

Los

Angeles

County

Metropolitan

Transportation

Authority

,

Revenue,

2016A,

Refunding,

5%,

6/01/35

...............................

17,655,000

21,713,355

Revenue,

2016A,

Refunding,

5%,

6/01/37

...............................

10,970,000

13,430,461

Revenue,

2016A,

Refunding,

5%,

6/01/38

...............................

28,160,000

34,406,451

Revenue,

2016A,

Refunding,

5%,

6/01/39

...............................

10,000,000

12,199,700

Revenue,

2019

A,

5%,

7/01/44

........................................

32,030,000

40,208,861

Revenue,

2020

A,

Refunding,

5%,

6/01/36

...............................

18,950,000

24,943,506

Revenue,

2020

A,

Refunding,

5%,

6/01/37

...............................

16,500,000

21,632,985

Los

Angeles

County

Sanitation

Districts

Financing

Authority

,

Revenue

,

2016

A

,

Refunding

,

4

%

,

10/01/42

............................................

16,430,000

18,204,604

Los

Angeles

Department

of

Water

,

Revenue,

2012A,

5%,

7/01/43

........................................

81,095,000

87,215,240

Revenue,

2014A,

5%,

7/01/44

........................................

50,000,000

57,476,000

Revenue,

2016

A,

Refunding,

5%,

7/01/46

...............................

62,660,000

75,047,882

Revenue,

2017A,

Refunding,

5%,

7/01/44

...............................

72,060,000

87,444,810

Revenue,

2018

A,

5%,

7/01/43

........................................

13,805,000

17,149,399

Revenue,

2018

A,

5%,

7/01/48

........................................

22,375,000

27,604,037

Revenue,

2018

B,

Refunding,

5%,

7/01/48

...............................

10,000,000

12,488,700

Revenue,

2020A,

Refunding,

5%,

7/01/41

...............................

15,000,000

19,605,300

Revenue,

2020A,

Refunding,

5%,

7/01/50

...............................

12,500,000

16,038,375

Los

Angeles

Department

of

Water

&

Power

,

Revenue,

2020

B,

Refunding,

5%,

7/01/39

...............................

13,000,000

17,134,130

Revenue,

2020

B,

Refunding,

5%,

7/01/40

...............................

40,520,000

53,024,067

Revenue,

2020

B,

Refunding,

5%,

7/01/45

...............................

10,775,000

13,884,880

Revenue,

2020

B,

Refunding,

5%,

7/01/50

...............................

70,265,000

89,650,411

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

23

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

Los

Angeles

Department

of

Water

&

Power,

(continued)

Power

System,

Revenue,

2014

D,

5%,

7/01/44

............................

$

51,940,000

$

59,602,708

Power

System,

Revenue,

2014

E,

5%,

7/01/44

............................

34,000,000

39,016,020

Power

System,

Revenue,

2014B,

5%,

7/01/43

............................

62,000,000

70,029,000

Power

System,

Revenue,

2015A,

Refunding,

5%,

7/01/35

...................

15,105,000

17,774,356

Power

System,

Revenue,

2015A,

Refunding,

5%,

7/01/36

...................

17,795,000

20,923,539

Power

System,

Revenue,

2016

A,

Refunding,

5%,

7/01/46

...................

15,000,000

17,923,200

Power

System,

Revenue,

2016B,

5%,

7/01/35

............................

11,995,000

14,591,917

Power

System,

Revenue,

2017A,

5%,

7/01/42

............................

7,710,000

9,361,405

Power

System,

Revenue,

2017A,

5%,

7/01/47

............................

16,000,000

19,292,000

Power

System,

Revenue,

2019

D,

Refunding,

5%,

7/01/44

...................

8,450,000

10,749,414

Power

System,

Revenue,

2019A,

5%,

7/01/45

............................

18,980,000

23,823,886

Power

System,

Revenue,

2019A,

5%,

7/01/49

............................

9,185,000

11,456,726

Los

Angeles

Unified

School

District

,

a

GO,

2020

A,

Refunding,

5%,

7/01/32

...................................

18,480,000

24,616,284

a

GO,

2020

A,

Refunding,

5%,

7/01/33

...................................

16,520,000

21,870,332

GO,

2020

RYQ,

4%,

7/01/44

.........................................

28,200,000

33,099,186

Los

Gatos-Saratoga

Joint

High

School

District

,

GO,

A,

4%,

8/01/39

................................................

10,635,000

11,802,616

GO,

A,

4%,

8/01/44

................................................

16,090,000

17,765,452

McFarland

Public

Financing

Authority

,

Revenue

,

2010A

,

AGMC

Insured

,

5

%

,

10/01/40

5,115,000

5,133,005

Mendocino-Lake

Community

College

District

,

GO

,

2011B

,

AGMC

Insured

,

5.125

%

,

8/01/41

.........................................................

7,500,000

7,748,775

Metropolitan

Water

District

of

Southern

California

,

Revenue,

2015

A,

5%,

7/01/40

........................................

10,000,000

11,932,200

Revenue,

2020

A,

5%,

10/01/45

.......................................

16,665,000

21,573,342

Revenue,

2020

C,

Refunding,

5%,

7/01/39

...............................

16,000,000

21,293,440

Revenue,

2020

C,

Refunding,

5%,

7/01/40

...............................

20,000,000

26,533,000

Midpeninsula

Regional

Open

Space

District

,

GO

,

2018

,

4

%

,

9/01/48

.............

11,220,000

13,026,981

Milpitas

Redevelopment

Agency

Successor

Agency

,

Tax

Allocation

,

1997

,

NATL

Insured

,

ETM,

5.5

%

,

1/15/24

.........................................

7,275,000

7,873,005

Miracosta

Community

College

District

,

GO

,

B

,

4

%

,

8/01/45

....................

25,405,000

30,404,958

Modesto

High

School

District

,

GO,

2002

A,

NATL

Insured,

Zero

Cpn.,

8/01/21

...........................

9,660,000

9,627,156

GO,

2002

A,

NATL

Insured,

Zero

Cpn.,

8/01/23

...........................

10,815,000

10,653,640

GO,

2002

A,

NATL

Insured,

Zero

Cpn.,

5/01/27

...........................

12,770,000

11,772,280

Monterey

Peninsula

Unified

School

District

,

GO,

2011A,

Pre-Refunded,

AGMC

Insured,

5.75%,

8/01/41

..................

17,500,000

18,322,150

GO,

2016C,

Refunding,

5%,

8/01/41

...................................

11,190,000

13,571,792

Moorpark

Unified

School

District

,

GO

,

2009A

,

AGMC

Insured

,

Zero

Cpn.,

8/01/32

...

5,870,000

4,695,002

Moreno

Valley

Unified

School

District

,

GO,

2004

A,

AGMC

Insured,

ETM,

Zero

Cpn.,

8/01/27

......................

6,315,000

6,037,077

GO,

2004

A,

AGMC

Insured,

ETM,

Zero

Cpn.,

8/01/28

......................

6,625,000

6,262,480

GO,

A,

AGMC

Insured,

5%,

8/01/44

....................................

29,220,000

34,407,426

Mount

San

Antonio

Community

College

District

,

GO

,

2013

A

,

0

%

,

8/01/43

.........

55,000,000

59,044,150

M-S-R

Energy

Authority

,

Revenue

,

2009B

,

6.5

%

,

11/01/39

.....................

25,000,000

39,557,750

M-S-R

Public

Power

Agency

,

Revenue

,

E

,

NATL

Insured

,

ETM,

6

%

,

7/01/22

.......

3,730,000

3,998,485

Needles

Public

Financing

Authority

,

Revenue

,

1992-A

,

7.5

%

,

8/15/22

............

290,000

290,763

Newport

Mesa

Unified

School

District

,

GO

,

2011

,

0

%

,

8/01/42

..................

20,000,000

27,546,000

Norman

Y

Mineta

San

Jose

International

Airport

SJC

,

Revenue,

2017A,

Refunding,

5%,

3/01/41

...............................

10,000,000

11,606,600

Revenue,

2017A,

Refunding,

5%,

3/01/47

...............................

20,000,000

23,010,200

Revenue,

2017B,

Refunding,

5%,

3/01/47

...............................

10,000,000

11,640,600

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

24

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

Northern

California

Power

Agency

,

Revenue

,

1986

A

,

Pre-Refunded

,

AMBAC

Insured

,

7.5

%

,

7/01/23

....................................................

$

1,505,000

$

1,585,683

Oak

Grove

School

District

,

GO

,

B-1

,

Pre-Refunded

,

Zero

Cpn.,

6/01/41

...........

36,240,000

8,441,383

Ocean

View

School

District

,

GO

,

B

,

2.5

%

,

8/01/49

...........................

9,775,000

9,931,205

Oceanside

Unified

School

District

,

GO,

2010B,

AGMC

Insured,

Zero

Cpn.,

8/01/38

...........................

10,590,000

6,974,574

GO,

2010B,

AGMC

Insured,

Zero

Cpn.,

8/01/39

...........................

7,860,000

5,009,099

GO,

2015,

Refunding,

5%,

8/01/48

.....................................

12,000,000

14,167,560

Ontario

Montclair

School

District

,

GO

,

2017A

,

5

%

,

8/01/46

....................

11,765,000

14,232,709

Orange

Community

Facilities

District

,

Special

Tax

,

2015

,

Refunding

,

AGMC

Insured

,

5

%

,

10/01/40

.....................................................

7,500,000

8,863,275

Orange

County

Sanitation

District

,

Revenue

,

2015A

,

Refunding

,

5

%

,

2/01/36

.......

8,350,000

9,751,214

Orange

County

Water

District

,

COP,

2003

B,

NATL

Insured,

ETM,

5%,

8/15/28

...........................

13,740,000

17,265,546

COP,

2003

B,

Pre-Refunded,

NATL

Insured,

5%,

8/15/34

....................

4,140,000

5,909,312

COP,

2003

B,

NATL

Insured,

ETM,

5%,

8/15/34

...........................

3,305,000

4,478,308

Oxnard

School

District

,

GO

,

C

,

Pre-Refunded

,

BAM

Insured

,

4

%

,

8/01/44

.........

10,755,000

12,300,386

Palomar

Community

College

District

,

GO,

2010B,

0%,

8/01/39

............................................

69,410,000

87,641,231

GO,

C,

5%,

8/01/44

................................................

35,120,000

41,499,899

Palomar

Health

,

GO,

2009A,

AGMC

Insured,

7%,

8/01/38

................................

36,000,000

51,633,360

GO,

2010A,

6.75%,

8/01/40

..........................................

60,000,000

83,847,000

Obligated

Group,

Revenue,

2017,

Refunding,

AGMC

Insured,

5%,

11/01/47

......

35,000,000

40,114,200

Paramount

Unified

School

District

,

GO,

2011,

AGMC

Insured,

5%,

8/01/46

.................................

11,270,000

11,620,835

GO,

2013,

BAM

Insured,

5%,

8/01/48

...................................

2,450,000

2,707,446

GO,

2013,

BAM

Insured,

Zero

Cpn.,

8/01/43

.............................

32,000,000

8,060,800

GO,

2013,

BAM

Insured,

Zero

Cpn.,

8/01/48

.............................

28,000,000

4,728,080

Patterson

Joint

Unified

School

District

,

GO,

2001

A,

NATL

Insured,

Zero

Cpn.,

8/01/22

...........................

1,900,000

1,874,502

GO,

2001

A,

NATL

Insured,

Zero

Cpn.,

8/01/23

...........................

1,985,000

1,941,092

GO,

2001

A,

NATL

Insured,

Zero

Cpn.,

8/01/24

...........................

2,075,000

2,004,450

GO,

2001

A,

NATL

Insured,

Zero

Cpn.,

8/01/25

...........................

2,170,000

2,067,381

GO,

2001

A,

NATL

Insured,

Zero

Cpn.,

8/01/26

...........................

2,265,000

2,108,964

Perris

Union

High

School

District

,

COP,

2019,

Refunding,

BAM

Insured,

5%,

10/01/48

........................

10,000,000

12,433,300

GO,

2013

A,

AGMC

Insured,

5%,

9/01/42

................................

5,000,000

5,552,450

Pittsburg

Unified

School

District

,

GO

,

2016

,

Refunding

,

4

%

,

8/01/44

.............

11,000,000

12,282,160

Pittsburg

Unified

School

District

Financing

Authority

,

Revenue

,

2011

,

Pre-Refunded

,

AGMC

Insured

,

5.5

%

,

9/01/46

........................................

9,980,000

10,472,114

Placentia-Yorba

Linda

Unified

School

District

,

GO,

2008

D,

Zero

Cpn.,

8/01/43

.......................................

27,955,000

16,046,450

GO,

2008

D,

Zero

Cpn.,

8/01/46

.......................................

89,200,000

44,490,284

GO,

2008

D,

Zero

Cpn.,

8/01/49

.......................................

85,000,000

38,509,250

Pomona

Unified

School

District

,

GO

,

C

,

AGMC

Insured

,

5.25

%

,

8/01/40

..........

16,000,000

16,570,400

Port

of

Los

Angeles

,

Revenue

,

2014B

,

Refunding

,

5

%

,

8/01/44

.................

10,300,000

11,715,426

Poway

Redevelopment

Agency

Successor

Agency

,

Tax

Allocation,

2015A,

Refunding,

5%,

12/15/31

...........................

10,180,000

13,612,696

Tax

Allocation,

2015A,

Refunding,

5%,

12/15/32

...........................

11,215,000

15,178,830

Tax

Allocation,

2015A,

Refunding,

5%,

6/15/33

............................

5,835,000

7,984,497

Poway

Unified

School

District

,

Community

Facilities

District

No.

16,

Special

Tax,

2020,

AGMC

Insured,

4%,

9/01/50

7,500,000

8,596,200

Facilities

Improvement

District

No.

2007-1,

GO,

B,

Zero

Cpn.,

8/01/46

..........

45,000,000

21,216,150

Regents

of

the

University

of

California

,

Medical

Center,

Revenue,

2013J,

5%,

5/15/48

............................

75,000,000

81,892,500

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

25

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

Regents

of

the

University

of

California,

(continued)

Medical

Center,

Revenue,

2016L,

Refunding,

5%,

5/15/47

...................

$

49,575,000

$

58,709,690

Rialto

Unified

School

District

,

GO

,

2011A

,

AGMC

Insured

,

0

%

,

8/01/41

...........

27,000,000

34,692,570

Rio

Hondo

Community

College

District

,

GO

,

2010C

,

Zero

Cpn.,

8/01/35

..........

10,000,000

7,359,800

Ripon

Unified

School

District

,

GO,

2013

A,

Refunding,

BAM

Insured,

5%,

8/01/42

........................

2,315,000

2,612,316

GO,

2013

A,

Pre-Refunded,

BAM

Insured,

5%,

8/01/42

.....................

705,000

801,754

River

Islands

Public

Financing

Authority

,

Lathrop

Irrigation

District

Electric,

Revenue,

2020,

Refunding,

AGMC

Insured,

4%,

9/01/45

........................................................

2,250,000

2,564,235

Lathrop

Irrigation

District

Electric,

Revenue,

2020,

Refunding,

AGMC

Insured,

4%,

9/01/50

........................................................

3,155,000

3,577,297

Riverside

County

Asset

Leasing

Corp.

,

County

of

Riverside,

Revenue,

1997A,

NATL

Insured,

Zero

Cpn.,

6/01/23

........

14,160,000

13,903,421

County

of

Riverside,

Revenue,

1997A,

NATL

Insured,

Zero

Cpn.,

6/01/24

........

13,005,000

12,636,828

Riverside

County

Transportation

Commission

,

Revenue,

2013

A,

Pre-Refunded,

5.25%,

6/01/39

..........................

11,000,000

12,497,210

Revenue,

Senior

Lien,

2013A,

5.75%,

6/01/48

............................

10,000,000

10,850,000

RNR

School

Financing

Authority

,

Community

Facilities

District

No.

92-1

,

Special

Tax

,

2015A

,

Refunding

,

BAM

Insured

,

5

%

,

9/01/36

............................

11,145,000

12,974,340

Rocklin

Unified

School

District

,

GO,

2003,

NATL

Insured,

Zero

Cpn.,

8/01/25

.............................

8,160,000

7,902,307

GO,

2003,

NATL

Insured,

Zero

Cpn.,

8/01/26

.............................

8,695,000

8,257,207

GO,

2003,

NATL

Insured,

Zero

Cpn.,

8/01/27

.............................

9,080,000

8,455,478

GO,

2003,

NATL

Insured,

Zero

Cpn.,

8/01/28

.............................

16,615,000

15,103,201

Community

Facilities

District

No.

3,

Special

Tax,

2019,

BAM

Insured,

4%,

9/15/49

..

11,825,000

13,516,448

Rohnert

Park

Community

Development

Commission

Successor

Agency

,

Tax

Allocation

,

2007R

,

NATL

Insured

,

ETM,

5

%

,

8/01/37

................................

1,380,000

1,424,146

Roseville

Natural

Gas

Financing

Authority

,

Revenue

,

2007

,

5

%

,

2/15/26

..........

5,000,000

6,020,400

Sacramento

Area

Flood

Control

Agency

,

Special

Assessment

,

2020

,

4

%

,

10/01/47

..

10,620,000

12,434,958

Sacramento

City

Unified

School

District

,

GO

,

2017E

,

4

%

,

5/01/47

...............

20,000,000

22,002,600

Sacramento

County

Sanitation

Districts

Financing

Authority

,

Revenue,

2014A,

Refunding,

5%,

12/01/44

..............................

25,000,000

28,690,250

Sacramento

Regional

County

Sanitation

District,

Revenue,

2020

A,

Refunding,

5%,

12/01/45

.......................................................

9,000,000

11,905,200

Sacramento

Regional

County

Sanitation

District,

Revenue,

2020

A,

Refunding,

5%,

12/01/50

.......................................................

10,000,000

13,142,500

Sacramento

Municipal

Utility

District

,

Revenue,

2019

G,

5%,

8/15/39

.......................................

3,135,000

4,079,732

Revenue,

2019

G,

5%,

8/15/41

.......................................

2,500,000

3,232,900

Electric

System,

Revenue,

2020

H,

5%,

8/15/50

...........................

51,700,000

66,711,612

Salida

Area

Public

Facilities

Financing

Agency

,

Special

Tax

,

2011

,

Pre-Refunded

,

AGMC

Insured

,

5

%

,

9/01/30

..........................................

5,435,000

5,678,216

San

Bernardino

Community

College

District

,

GO

,

2009B

,

Zero

Cpn.,

8/01/48

.......

66,390,000

29,993,674

San

Buenaventura

Public

Facilities

Financing

Authority

,

Revenue,

2014

C,

5%,

1/01/39

........................................

8,500,000

9,638,830

Revenue,

5%,

1/01/44

..............................................

19,395,000

21,920,035

San

Diego

Community

College

District

,

GO

,

2009B

,

6

%

,

8/01/33

................

26,880,000

35,960,333

San

Diego

County

Regional

Airport

Authority

,

Revenue,

2019

A,

Refunding,

5%,

7/01/44

...............................

9,000,000

11,029,770

Revenue,

2019

A,

Refunding,

5%,

7/01/49

...............................

5,000,000

6,093,150

Revenue,

2019

B,

Refunding,

4%,

7/01/44

...............................

3,000,000

3,307,710

Revenue,

2019

B,

Refunding,

5%,

7/01/49

...............................

5,000,000

5,966,050

Special

Facilities,

Revenue,

2014A,

5%,

7/01/44

..........................

5,645,000

6,182,573

San

Diego

County

Regional

Transportation

Commission

,

Revenue,

2014A,

Pre-Refunded,

5%,

4/01/44

.............................

54,915,000

63,762,356

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

26

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

San

Diego

County

Regional

Transportation

Commission,

(continued)

Revenue,

2014A,

Pre-Refunded,

5%,

4/01/48

.............................

$

20,000,000

$

23,222,200

Revenue,

2016A,

5%,

4/01/48

........................................

25,000,000

29,989,500

San

Diego

Public

Facilities

Financing

Authority

,

City

of

San

Diego

Water

Utility

,

Revenue

,

2020

A

,

4

%

,

8/01/45

........................................

4,500,000

5,408,055

San

Diego

Unified

School

District

,

2020

M-2,

3%,

7/01/50

..............................................

25,000,000

26,819,250

GO,

1999

A,

NATL

Insured,

Zero

Cpn.,

7/01/21

...........................

12,160,000

12,136,410

GO,

1999

A,

NATL

Insured,

Zero

Cpn.,

7/01/22

...........................

8,440,000

8,385,646

GO,

1999

A,

NATL

Insured,

Zero

Cpn.,

7/01/23

...........................

11,120,000

10,971,548

GO,

2009-1,

Pre-Refunded,

6%,

7/01/33

................................

104,505,000

127,078,080

GO,

2010C,

0%,

7/01/48

............................................

29,840,000

32,627,951

GO,

2012

E,

Zero

Cpn.,

7/01/47

.......................................

74,270,000

70,143,559

GO,

2019

L,

4%,

7/01/49

............................................

30,000

35,255

GO,

2020

D2,

4%,

7/01/50

...........................................

125,000,000

148,406,250

GO,

F,

5%,

7/01/40

................................................

56,510,000

66,965,480

GO,

F,

5%,

7/01/45

................................................

34,370,000

40,432,181

GO,

G,

5%,

7/01/40

................................................

13,000,000

15,405,260

GO,

R-2,

Refunding,

0%,

7/01/40

......................................

79,500,000

92,281,215

San

Francisco

Bay

Area

Rapid

Transit

District

,

GO,

2020

C-1,

4%,

8/01/45

..........................................

35,295,000

41,432,095

GO,

2020

C-1,

3%,

8/01/50

..........................................

65,000,000

69,160,000

San

Francisco

City

&

County

Airport

Comm-San

Francisco

International

Airport

,

Revenue,

2016B,

5%,

5/01/46

........................................

28,040,000

31,850,636

Revenue,

2019

A,

Refunding,

5%,

5/01/49

...............................

25,000,000

29,628,750

Revenue,

Second

Series,

2014B,

5%,

5/01/44

............................

31,000,000

34,848,650

Revenue,

Second

Series,

2017A,

5%,

5/01/42

............................

20,910,000

24,380,433

Revenue,

Second

Series,

2017A,

5%,

5/01/47

............................

49,090,000

56,811,366

Revenue,

Second

Series,

2017B,

5%,

5/01/47

............................

70,725,000

83,024,077

Revenue,

Second

Series,

2018,

5.25%,

5/01/48

...........................

120,000,000

142,267,200

Revenue,

Second

Series,

2018

D,

5%,

5/01/48

...........................

117,910,000

137,150,554

Revenue,

Second

Series,

2018E,

5%,

5/01/48

............................

44,650,000

53,050,451

Revenue,

Second

Series,

2019E,

5%,

5/01/50

............................

6,500,000

7,695,025

San

Francisco

City

&

County

Redevelopment

Agency

Successor

Agency

,

Tax

Allocation,

Third

Lien

,

2017B

,

AGMC

Insured

,

5

%

,

8/01/46

...................

10,000,000

11,919,900

San

Gabriel

Unified

School

District

,

GO,

2002

A,

AGMC

Insured,

Zero

Cpn.,

8/01/26

...........................

3,530,000

3,365,926

GO,

2002

A,

AGMC

Insured,

Zero

Cpn.,

2/01/27

...........................

1,850,000

1,748,379

San

Joaquin

Hills

Transportation

Corridor

Agency

,

Revenue,

1997

A,

Refunding,

NATL

Insured,

Zero

Cpn.,

1/15/26

...............

13,155,000

11,837,658

Revenue,

Refunding,

0%,

1/15/38

.....................................

245,085,000

323,882,375

Revenue,

1997

A,

Refunding,

0%,

1/15/40

...............................

158,655,000

213,878,046

Revenue,

1997

A,

Refunding,

Zero

Cpn.,

1/15/41

..........................

141,024,000

191,108,674

Revenue,

1997

A,

Refunding,

Zero

Cpn.,

1/15/42

..........................

141,024,000

191,884,306

Revenue,

Senior

Lien,

1993,

ETM,

Zero

Cpn.,

1/01/25

......................

5,700,000

5,613,588

Revenue,

Senior

Lien,

1993,

ETM,

Zero

Cpn.,

1/01/28

......................

33,545,000

31,911,694

Revenue,

Senior

Lien,

1993,

ETM,

Zero

Cpn.,

1/01/29

......................

37,050,000

33,956,325

Revenue,

Senior

Lien,

2014A,

Refunding,

5%,

1/15/44

......................

125,000,000

137,993,750

Revenue,

Senior

Lien,

2014A,

Refunding,

5%,

1/15/50

......................

430,000,000

472,453,900

San

Jose

Evergreen

Community

College

District

,

GO

,

B

,

2.5

%

,

9/01/45

...........

24,815,000

24,778,770

San

Jose

Unified

School

District

,

COP,

2002,

AGMC

Insured,

ETM,

Zero

Cpn.,

1/01/27

.......................

7,105,000

6,805,738

COP,

2002,

AGMC

Insured,

ETM,

Zero

Cpn.,

1/01/29

.......................

7,105,000

6,458,587

San

Juan

Unified

School

District

,

GO,

2003

B,

NATL

Insured,

Zero

Cpn.,

8/01/26

...........................

15,825,000

14,000,852

GO,

2003

B,

NATL

Insured,

Zero

Cpn.,

8/01/27

...........................

18,605,000

17,407,954

GO,

2003

B,

NATL

Insured,

Zero

Cpn.,

8/01/28

...........................

19,470,000

17,794,996

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

27

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

San

Luis

Obispo

County

Financing

Authority

,

Revenue

,

2015A

,

Refunding

,

BAM

Insured

,

5

%

,

9/01/37

...............................................

$

10,000,000

$

11,971,000

San

Marcos

Public

Financing

Authority

,

Revenue

,

1994

A

,

ETM,

6.25

%

,

9/02/22

....

15,000,000

16,732,050

San

Marino

Unified

School

District

,

GO

,

2000

A

,

NATL

Insured

,

Zero

Cpn.,

7/01/25

..

6,080,000

5,923,683

San

Mateo

Foster

City

Public

Financing

Authority

,

City

of

San

Mateo

Sewer

,

Revenue

,

2019

,

5

%

,

8/01/49

.................................................

29,000,000

36,881,330

San

Mateo

Union

High

School

District

,

COP,

2007,

Pre-Refunded,

AMBAC

Insured,

5%,

12/15/43

...................

11,535,000

13,770,829

GO,

2002

B,

NATL

Insured,

Zero

Cpn.,

9/01/22

...........................

5,000,000

4,969,450

San

Rafael

City

High

School

District

,

GO

,

2018

B

,

4

%

,

8/01/47

.................

17,060,000

19,595,628

Sanger

Public

Financing

Authority

,

Revenue,

2013,

AGMC

Insured,

5%,

6/15/35

.............................

2,360,000

2,636,002

Revenue,

2013,

AGMC

Insured,

5%,

6/15/43

.............................

6,155,000

6,837,959

Sanger

Unified

School

District

,

GO

,

A

,

BAM

Insured

,

4

%

,

8/01/41

...............

10,000,000

11,351,800

Santa

Ana

Community

Redevelopment

Agency

Successor

Agency

,

Tax

Allocation,

2011A,

Pre-Refunded,

6.25%,

9/01/24

.......................

7,005,000

7,184,118

Tax

Allocation,

2011A,

Pre-Refunded,

6.75%,

9/01/28

.......................

13,500,000

13,871,385

Santa

Ana

Unified

School

District

,

COP

,

1999

,

AGMC

Insured

,

Zero

Cpn.,

4/01/24

...

11,225,000

10,120,909

Santa

Barbara

Housing

Authority

,

Revenue

,

Refunding

,

6.25

%

,

11/15/20

..........

540,000

541,733

Santa

Cruz

County

Redevelopment

Successor

Agency

,

Tax

Allocation

,

2015A

,

Refunding

,

AGMC

Insured

,

5

%

,

9/01/35

.................................

20,000,000

23,394,200

Santa

Maria

Joint

Union

High

School

District

,

GO

,

2014

,

4

%

,

8/01/37

............

14,230,000

15,542,148

Santa

Paula

Utility

Authority

,

Revenue,

2015A,

5%,

2/01/45

........................................

16,495,000

18,684,876

Revenue,

2015A,

5%,

2/01/50

........................................

21,050,000

23,778,922

School

Facilities

Financing

Authority

,

Twin

Rivers

Unified

School

District

,

Revenue

,

A

,

AGMC

Insured

,

Zero

Cpn.,

8/01/42

....................................

49,000,000

26,414,920

Semitropic

Improvement

District

of

the

Semitropic

Water

Storage

District

,

Revenue,

Second

Lien

,

2015A

,

Refunding

,

AGMC

Insured

,

5

%

,

12/01/45

................

10,000,000

11,875,200

Sonoma

Community

Development

Agency

Successor

Agency

,

Tax

Allocation

,

2011

,

7.125

%

,

12/01/36

..................................................

10,775,000

11,467,186

Southern

California

Public

Power

Authority

,

Revenue

,

2007A

,

5

%

,

11/01/33

........

17,500,000

23,217,250

Southern

California

Water

Replenishment

District

,

COP

,

2011

,

Pre-Refunded

,

5

%

,

8/01/41

......................................................

22,870,000

23,801,952

Southern

Mono

Health

Care

District

,

GO,

A,

NATL

Insured,

Zero

Cpn.,

8/01/28

................................

2,340,000

2,090,977

GO,

A,

NATL

Insured,

Zero

Cpn.,

8/01/29

................................

2,440,000

2,119,970

GO,

A,

NATL

Insured,

Zero

Cpn.,

8/01/30

................................

2,550,000

2,149,573

GO,

A,

NATL

Insured,

Zero

Cpn.,

8/01/31

................................

2,660,000

2,182,690

Southwestern

Community

College

District

,

GO

,

D

,

5

%

,

8/01/44

.................

10,000,000

11,821,800

Stanislaus

Union

School

District

,

GO

,

B

,

Pre-Refunded

,

AGMC

Insured

,

5.125

%

,

8/01/41

.........................................................

3,400,000

3,540,624

State

of

California

,

GO,

6%,

5/01/24

..................................................

2,565,000

2,580,569

GO,

NATL

Insured,

6%,

8/01/24

.......................................

990,000

1,009,097

GO,

5.625%,

9/01/24

...............................................

255,000

260,786

GO,

AMBAC

Insured,

5.9%,

3/01/25

....................................

170,000

174,058

GO,

5.25%,

3/01/30

................................................

15,000,000

15,059,700

GO,

Pre-Refunded,

6%,

3/01/33

.......................................

2,345,000

2,356,022

GO,

6%,

3/01/33

..................................................

6,055,000

6,082,429

GO,

Refunding,

5%,

3/01/35

.........................................

50,000,000

65,806,500

GO,

Refunding,

4%,

3/01/36

.........................................

10,000,000

12,020,300

GO,

5%,

10/01/39

.................................................

15,000,000

18,144,450

GO,

5%,

10/01/41

.................................................

15,250,000

15,930,150

GO,

5%,

4/01/43

..................................................

44,745,000

49,495,577

GO,

5%,

10/01/44

.................................................

25,000,000

28,978,000

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

28

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

State

of

California,

(continued)

GO,

5%,

8/01/45

..................................................

$

22,500,000

$

26,575,200

GO,

4%,

3/01/46

..................................................

6,750,000

7,871,445

GO,

5%,

8/01/46

..................................................

20,000,000

24,169,400

GO,

5%,

10/01/47

.................................................

81,000,000

96,927,840

GO,

5%,

4/01/49

..................................................

5,000,000

6,224,900

GO,

1992,

NATL

Insured,

6%,

10/01/21

.................................

65,000

66,902

GO,

1996,

Pre-Refunded,

FGIC

Insured,

5.375%,

6/01/26

...................

1,335,000

1,346,361

GO,

1997,

NATL,

FGIC

Insured,

5.625%,

10/01/26

.........................

5,005,000

5,138,834

GO,

2004,

5.125%,

4/01/24

..........................................

5,000

5,020

GO,

2004,

5.2%,

4/01/26

............................................

20,000

20,081

GO,

2010,

5.25%,

11/01/40

..........................................

69,685,000

69,974,193

GO,

2012,

5%,

4/01/42

.............................................

85,000,000

90,479,950

GO,

2017,

5%,

11/01/47

.............................................

10,000,000

12,269,500

State

of

California

Department

of

Water

Resources

,

Revenue,

BB,

Refunding,

5%,

12/01/32

.................................

17,110,000

23,859,895

Revenue,

BB,

Refunding,

5%,

12/01/33

.................................

10,785,000

14,958,364

Revenue,

BB,

5%,

12/01/35

..........................................

3,100,000

4,253,448

Sulphur

Springs

Union

School

District

,

COP,

2010,

AGMC

Insured,

ETM,

6.5%,

12/01/37

..........................

2,150,000

2,388,263

COP,

2010,

AGMC

Insured,

6.5%,

12/01/37

..............................

11,390,000

14,469,400

Temple

City

Unified

School

District

,

GO

,

A

,

Pre-Refunded

,

5

%

,

8/01/43

...........

10,000,000

11,372,400

Transbay

Joint

Powers

Authority

,

Transbay

Redevelopment

Project

Tax

Increment

Re-Development

Project,

Tax

Allocation,

Senior

Lien,

2020

A,

5%,

10/01/45

...........................

10,410,000

12,875,817

Transbay

Redevelopment

Project

Tax

Increment

Re-Development

Project,

Tax

Allocation,

Senior

Lien,

2020

A,

5%,

10/01/49

...........................

7,985,000

9,822,987

Tulare

County

Board

of

Education

,

COP,

Pre-Refunded,

BAM

Insured,

5.375%,

5/01/33

........................

3,185,000

3,610,803

COP,

Pre-Refunded,

BAM

Insured,

5.5%,

5/01/38

.........................

8,305,000

9,441,954

COP,

Pre-Refunded,

BAM

Insured,

5.5%,

5/01/43

.........................

10,855,000

12,341,050

Union

Elementary

School

District

,

GO,

1999-A,

NATL

Insured,

Zero

Cpn.,

9/01/24

...........................

2,000,000

1,955,180

GO,

2001B,

NATL

Insured,

Zero

Cpn.,

9/01/25

............................

5,500,000

5,313,990

GO,

2001B,

NATL

Insured,

Zero

Cpn.,

9/01/26

............................

5,850,000

5,570,663

University

of

California

,

Revenue,

2015

I,

Refunding,

5%,

5/15/40

................................

22,990,000

27,130,959

Revenue,

2015

I,

Refunding,

5%,

5/15/50

................................

25,420,000

29,685,222

Revenue,

2016AR,

Refunding,

5%,

5/15/41

..............................

13,760,000

16,576,259

Revenue,

2016K,

4%,

5/15/46

........................................

19,850,000

22,314,576

Revenue,

2017M,

5%,

5/15/37

........................................

15,410,000

18,989,281

Revenue,

2018

AZ,

Refunding,

5%,

5/15/48

..............................

72,325,000

89,410,335

Revenue,

2018

O,

Refunding,

5%,

5/15/39

...............................

14,400,000

18,076,608

Revenue,

2018

O,

Refunding,

5%,

5/15/43

...............................

30,120,000

37,386,751

Revenue,

2018

O,

Refunding,

5%,

5/15/48

...............................

20,000,000

24,644,200

Revenue,

2018

O,

Refunding,

5%,

5/15/58

...............................

10,000,000

12,220,700

Revenue,

2020

BE,

Refunding,

5%,

5/15/41

..............................

20,000,000

25,912,800

Revenue,

2020

BE,

Refunding,

5%,

5/15/42

..............................

26,250,000

33,902,137

Revenue,

2020

BE,

Refunding,

4%,

5/15/47

..............................

13,000,000

15,212,860

Revenue,

2020

BE,

Refunding,

4%,

5/15/50

..............................

13,000,000

15,158,000

Upland

Unified

School

District

,

GO

,

2011C

,

Zero

Cpn.,

8/01/45

.................

62,900,000

30,749,923

Vacaville

Unified

School

District

,

GO

,

D

,

4

%

,

8/01/45

.........................

2,000,000

2,303,300

Val

Verde

Unified

School

District

,

GO,

2010B,

AGMC

Insured,

0%,

8/01/34

................................

1,000,000

1,330,510

GO,

2015B,

Refunding,

BAM

Insured,

5%,

8/01/44

.........................

15,000,000

17,448,300

GO,

2020A,

BAM

Insured,

4%,

8/01/46

.................................

1,450,000

1,659,133

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

29

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

Val

Verde

Unified

School

District,

(continued)

GO,

2020A,

BAM

Insured,

2.75%,

8/01/49

...............................

$

3,000,000

$

3,026,130

GO,

2020E,

BAM

Insured,

2.75%,

8/01/46

...............................

1,100,000

1,113,123

Vallejo

Public

Financing

Authority

,

Vallejo

CA-Hiddenbrooke

Improvement

District

No.

1

,

Revenue

,

2004-A

,

5.8

%

,

9/01/31

....................................

3,495,000

3,530,299

Vista

Redevelopment

Agency

Successor

Agency

,

Tax

Allocation

,

2015B-1

,

Refunding

,

AGMC

Insured

,

5

%

,

9/01/37

..........................................

3,020,000

3,469,950

Vista

Unified

School

District

,

GO,

2002A,

AGMC

Insured,

Zero

Cpn.,

8/01/26

...........................

7,150,000

6,786,065

GO,

2002A,

AGMC

Insured,

Zero

Cpn.,

2/01/27

...........................

4,795,000

4,497,518

Washington

Township

Health

Care

District

,

GO,

2015B,

5%,

8/01/45

............................................

15,000,000

16,873,350

Revenue,

2010-A,

5.5%,

7/01/38

......................................

11,000,000

11,039,930

West

Hills

Community

College

District

,

GO

,

2011B

,

Pre-Refunded

,

AGMC

Insured

,

6.5

%

,

8/01/41

....................................................

4,000,000

4,209,360

West

Sacramento

Area

Flood

Control

Agency

,

Special

Assessment,

2011,

Pre-Refunded,

5.25%,

9/01/41

...................

9,030,000

9,454,681

Special

Assessment,

2015,

AGMC

Insured,

5%,

9/01/40

.....................

3,000,000

3,586,500

Special

Assessment,

2015,

AGMC

Insured,

5%,

9/01/45

.....................

7,500,000

8,910,600

West

Sacramento

Financing

Authority

,

Special

Tax

,

A

,

AGMC

Insured

,

5

%

,

9/01/34

..

4,940,000

6,642,373

Western

Placer

Unified

School

District

,

COP

,

2011

,

AGMC

Insured

,

ETM,

5.2

%

,

11/01/41

........................................................

1,000,000

1,053,830

Western

Riverside

Water

&

Wastewater

Financing

Authority

,

Revenue,

2009,

AGMC

Insured,

5.5%,

9/01/34

............................

1,750,000

1,757,210

Revenue,

2009,

AGMC

Insured,

5.625%,

9/01/39

..........................

2,500,000

2,510,125

Wiseburn

School

District

,

GO

,

2011B

,

Pre-Refunded

,

AGMC

Insured

,

5.625

%

,

5/01/41

10,000,000

10,459,400

16,322,142,338

U.S.

Territories

0.8%

Puerto

Rico

0.8%

Children's

Trust

Fund

,

Revenue,

5.5%,

5/15/39

.............................................

6,210,000

6,248,130

Revenue,

2002,

5.625%,

5/15/43

......................................

16,000,000

16,081,120

c

Puerto

Rico

Electric

Power

Authority

,

Revenue,

2012A-RSA-1

2012A,

5%,

7/01/29

.............................

20,000,000

14,250,000

Revenue,

2012A-RSA-1

2012A,

5%,

7/01/42

.............................

24,000,000

17,100,000

Revenue,

2012A-RSA-1

2013A,

7%,

7/01/33

.............................

50,000,000

36,375,000

Revenue,

WW-RSA-1,

5%,

7/01/28

....................................

12,030,000

8,571,375

Revenue,

WW-RSA-1,

5.25%,

7/01/33

..................................

32,250,000

22,978,125

Revenue,

XX-RSA-1,

5.25%,

7/01/40

...................................

14,000,000

9,975,000

Puerto

Rico

Industrial

Tourist

Educational

Medical

&

Environmental

Control

Facilities

Financing

Authority

,

AES

Puerto

Rico

LP

,

Revenue

,

2000A

,

6.625

%

,

6/01/26

.....

5,800,000

6,003,000

137,581,750

Total

U.S.

Territories

....................................................................

137,581,750

Total

Municipal

Bonds

(Cost

$14,114,439,773)

..................................

16,459,724,088

Total

Long

Term

Investments

(Cost

$14,178,363,320)

............................

16,525,816,367

a

a

a

a

a

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

30

s

Short

Term

Investments

1.0%

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

1.0%

California

1.0%

d

California

Statewide

Communities

Development

Authority

,

Rady

Children's

Hospital

Obligated

Group

,

Revenue

,

2008B

,

LOC

Wells

Fargo

Bank

NA

,

Daily

VRDN

and

Put

,

0.08

%

,

8/15/47

...................................................

$

12,000,000

$

12,000,000

d

Irvine

Ranch

Water

District

,

Special

Assessment

,

2009B

,

LOC

Bank

of

America

NA

,

Daily

VRDN

and

Put

,

0.09

%

,

10/01/41

..................................

18,810,000

18,810,000

d

Los

Angeles

Department

of

Water

&

Power

,

Power

System

,

Revenue

,

2002

A-4

,

Refunding

,

SPA

Bank

of

America

NA

,

Daily

VRDN

and

Put

,

0.12

%

,

7/01/35

......

12,700,000

12,700,000

d

Metropolitan

Water

District

of

Southern

California

,

Revenue

,

2018

A-2

,

Refunding

,

SPA

Toronto-Dominion

Bank

(The)

,

Daily

VRDN

and

Put

,

0.11

%

,

7/01/37

............

18,100,000

18,100,000

d

Regents

of

the

University

of

California

,

Medical

Center

,

Revenue

,

2007

B-1

,

Refunding

,

Daily

VRDN

and

Put

,

0.1

%

,

5/15/32

....................................

10,600,000

10,600,000

d

Santa

Clara

Valley

Transportation

Authority

,

Revenue

,

2008D

,

Refunding

,

SPA

TD

Bank

NA

,

Daily

VRDN

and

Put

,

0.11

%

,

4/01/36

...........................

13,000,000

13,000,000

d

State

of

California

,

GO

,

2003A-3

,

LOC

Bank

of

Montreal

,

Daily

VRDN

and

Put

,

0.1

%

,

5/01/33

.........................................................

21,205,000

21,205,000

d

University

of

California

,

Revenue,

2013

AL-1,

Daily

VRDN

and

Put,

0.11%,

5/15/48

...................

30,000,000

30,000,000

Revenue,

2013

AL-4,

Refunding,

Daily

VRDN

and

Put,

0.08%,

5/15/48

..........

25,600,000

25,600,000

162,015,000

Total

Municipal

Bonds

(Cost

$162,015,000)

.....................................

162,015,000

Total

Short

Term

Investments

(Cost

$162,015,000

)

...............................

162,015,000

a

Total

Investments

(Cost

$14,340,378,320)

99.3%

................................

$16,687,831,367

Other

Assets,

less

Liabilities

0.7%

.............................................

123,411,510

Net

Assets

100.0%

...........................................................

$16,811,242,877

See

Abbreviations

on

page

41

.

a

Security

purchased

on

a

when-issued

basis.

See

Note

1(b).

b

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

September

30,

2020,

the

aggregate

value

of

these

securities

was

$10,638,002,

representing

0.1%

of

net

assets.

c

See

Note

7

regarding

defaulted

securities.

d

Variable

rate

demand

notes

(VRDNs)

are

obligations

which

contain

a

floating

or

variable

interest

rate

adjustment

formula

and

an

unconditional

right

of

demand

to

receive

payment

of

the

principal

balance

plus

accrued

interest

at

specified

dates.

Unless

otherwise

noted,

the

coupon

rate

is

determined

based

on

factors

including

supply

and

demand,

underlying

credit,

tax

treatment,

and

current

short

term

rates.

The

coupon

rate

shown

represents

the

rate

at

period

end.

Franklin

California

Tax-Free

Income

Fund

Financial

Statements

Statement

of

Assets

and

Liabilities

September

30,

2020

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

31

Franklin

California

Tax-

Free

Income

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$14,340,378,320

Value

-

Unaffiliated

issuers

..................................................................

$16,687,831,367

Cash

....................................................................................

117,727

Receivables:

Investment

securities

sold

...................................................................

33,814,731

Capital

shares

sold

........................................................................

13,417,364

Interest

.................................................................................

163,575,284

Other

assets

..............................................................................

7,830

Total

assets

..........................................................................

16,898,764,303

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

47,233,461

Capital

shares

redeemed

...................................................................

24,476,944

Management

fees

.........................................................................

6,083,036

Distribution

fees

..........................................................................

1,829,919

Transfer

agent

fees

........................................................................

1,703,751

Distributions

to

shareholders

.................................................................

5,949,836

Accrued

expenses

and

other

liabilities

...........................................................

244,479

Total

liabilities

.........................................................................

87,521,426

Net

assets,

at

value

.................................................................

$16,811,242,877

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$15,387,085,223

Total

distributable

earnings

(losses)

.............................................................

1,424,157,654

Net

assets,

at

value

.................................................................

$16,811,242,877

Franklin

California

Tax-Free

Income

Fund

Financial

Statements

Statement

of

Assets

and

Liabilities

(continued)

September

30,

2020

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

32

Franklin

California

Tax-

Free

Income

Fund

Class

A:

Net

assets,

at

value

.......................................................................

$1,794,648,392

Shares

outstanding

........................................................................

233,069,232

Net

asset

value

per

share

a

..................................................................

$7.70

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

96.25%)

................................

$8.00

Class

A1:

Net

assets,

at

value

.......................................................................

$11,270,290,116

Shares

outstanding

........................................................................

1,465,768,096

Net

asset

value

per

share

a

..................................................................

$7.69

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

96.25%)

................................

$7.99

Class

C:

Net

assets,

at

value

.......................................................................

$1,067,098,586

Shares

outstanding

........................................................................

139,074,854

Net

asset

value

and

maximum

offering

price

per

share

a

.............................................

$7.67

Class

R6:

Net

assets,

at

value

.......................................................................

$231,040,991

Shares

outstanding

........................................................................

30,083,758

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$7.68

Advisor

Class:

Net

assets,

at

value

.......................................................................

$2,448,164,792

Shares

outstanding

........................................................................

318,948,602

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$7.68

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

California

Tax-Free

Income

Fund

Financial

Statements

Statement

of

Operations

for

the

period

ended

September

30,

2020

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

33

Franklin

California

Tax-

Free

Income

Fund

Investment

income:

Interest:

Unaffiliated

issuers

........................................................................

$299,768,913

Expenses:

Management

fees

(Note

3

a

)

...................................................................

36,120,661

Distribution

fees:

(Note

3c

)

    Class

A

................................................................................

1,991,307

    Class

A1

...............................................................................

5,478,491

    Class

C

................................................................................

3,591,765

Transfer

agent

fees:

(Note

3e

)

    Class

A

................................................................................

443,705

    Class

A1

...............................................................................

3,165,157

    Class

C

................................................................................

308,263

    Class

R6

...............................................................................

27,532

    Advisor

Class

............................................................................

631,971

Custodian

fees

(Note

4

)

......................................................................

50,796

Reports

to

shareholders

......................................................................

104,996

Registration

and

filing

fees

....................................................................

61,547

Professional

fees

...........................................................................

133,501

Trustees'

fees

and

expenses

..................................................................

71,128

Other

....................................................................................

222,133

Total

expenses

.........................................................................

52,402,953

Expense

reductions

(Note

4

)

...............................................................

(97,329)

Expenses

waived/paid

by

affiliates

(

Note

3f)

....................................................

(6,477)

Net

expenses

.........................................................................

52,299,147

Net

investment

income

................................................................

247,469,766

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

(15,184,817)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

439,136,108

Net

realized

and

unrealized

gain

(loss)

............................................................

423,951,291

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$671,421,057

Franklin

California

Tax-Free

Income

Fund

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

34

Franklin

California

Tax-Free

Income

Fund

Six

Months

Ended

September

30,

2020

(unaudited)

Year

Ended

March

31,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$247,469,766

$500,037,492

Net

realized

gain

(loss)

.................................................

(15,184,817)

(134,416,400)

Net

change

in

unrealized

appreciation

(depreciation)

...........................

439,136,108

237,530,082

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

671,421,057

603,151,174

Distributions

to

shareholders:

Class

A

.............................................................

(22,507,205)

(31,341,778)

Class

A1

............................................................

(169,417,967)

(390,859,950)

Class

C

.............................................................

(13,45

4,282)

(31,683,409)

Class

R6

............................................................

(3,210,649)

(4,986,690)

Advisor

Class

........................................................

(34,947,340)

(62,073,101)

Total

distributions

to

shareholders

..........................................

(243,537,443)

(520,944,928)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

360,926,768

889,240,042

Class

A1

............................................................

(472,721,404)

(467,749,607)

Class

C

.............................................................

(81,481,109)

(12,029,852)

Class

R6

............................................................

39,915,052

83,819,528

Advisor

Class

........................................................

500,128,978

242,039,708

Total

capital

share

transactions

............................................

346,768,285

735,319,819

Net

increase

(decrease)

in

net

assets

...................................

774,651,899

817,526,065

Net

assets:

Beginning

of

period

.....................................................

16,036,590,978

15,219,064,913

End

of

period

..........................................................

$16,811,242,877

$16,036,590,978

Franklin

California

Tax-Free

Income

Fund

35

franklintempleton.com

Semiannual

Report

Notes

to

Financial

Statements

(unaudited)

1.

Organization

and

Significant

Accounting

Policies

Franklin

California

Tax-Free

Income

Fund (Fund)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

The

Fund

offers

five

classes

of

shares:

Class

A,

Class

A1,

Class

C,

Class

R6

and

Advisor

Class.

Class

C

shares

automatically

convert

to

Class

A

shares

after

they

have

been

held

for

10

years.

Each

class

of

shares

may

differ

by

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees. 

The

following

summarizes

the

Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund’s

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Fund's

Board

of

Trustees

(the

Board),

the

Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Debt

securities

generally

trade

in

the

over-the-counter

market

rather

than

on

a

securities

exchange.

The

Fund's

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-

based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

b.

Securities

Purchased

on

a

When-Issued

Basis

The

Fund

purchases

securities

on

a

when-issued

basis,

with

payment

and

delivery

scheduled

for

a

future

date.

These

transactions

are

subject

to

market

fluctuations

and

are

subject

to

the

risk

that

the

value

at

delivery

may

be

more

or

less

than

the

trade

date

purchase

price.

Although

the

Fund

will

generally

purchase

these

securities

with

the

intention

of

holding

the

securities,

it

may

sell

the

securities

before

the

settlement

date.

Sufficient

assets

have

been

segregated

for

these

securities.

c.

Income

Taxes

It

is the

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The

Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

income

and

net

realized

gains

to

relieve

it

from

federal

income

and excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

September

30,

2020,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

Franklin

California

Tax-Free

Income

Fund

Notes

to

Financial

Statements

(unaudited)

36

franklintempleton.com

Semiannual

Report

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

d.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Dividends

from

net

investment

income

are

normally

declared

daily;

these

dividends

may

be

reinvested

or

paid

monthly

to

shareholders.

Distributions

from

net

realized

capital

gains

and

other

distributions,

if

any,

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

e.

Insurance

The

scheduled

payments

of

interest

and

principal

for

each

insured

municipal

security

in

the

Fund

are

insured

by

either

a

new

issue

insurance

policy

or

a

secondary

insurance

policy.

Some

municipal

securities

in

the

Fund

are

secured

by

collateral

guaranteed

by

an

agency

of

the

U.S.

government.

Depending

on

the

type

of

coverage,

premiums

for

insurance

are

either

added

to

the

cost

basis

of

the

security

or

paid

by

a

third

party.

Insurance

companies

typically

insure

municipal

bonds

that

tend

to

be

of

very

high

quality,

with

the

majority

of

underlying

municipal

bonds

rated

A

or

better.

However,

an

event

involving

an

insurer

could

have

an

adverse

effect

on

the

value

of

the

securities

insured

by

that

insurance

company.

There

can

be

no

assurance

the

insurer

will

be

able

to

fulfill

its

obligations

under

the

terms

of

the

policy.

f.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

g.

Guarantees

and

Indemnifications

Under

the

Fund’s

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Fund

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Fund.

Additionally,

in

the

normal

course

of

business,

the

Fund

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Fund’s

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Fund

that

have

not

yet

occurred.

Currently,

the

Fund

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Income

Taxes

(continued)

Franklin

California

Tax-Free

Income

Fund

Notes

to

Financial

Statements

(unaudited)

37

franklintempleton.com

Semiannual

Report

2.

Shares

of

Beneficial

Interest

At

September

30,

2020,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund’s

shares

were

as

follows:

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers

and/or

directors

of

the

following

subsidiaries:

Six

Months

Ended

September

30,

2020

Year

Ended

March

31,2020

Shares

Amount

Shares

Amount

Class

A

Shares:

Shares

sold

a

...................................

61,619,198

$471,821,876

147,850,300

$1,129,226,407

Shares

issued

in

reinvestment

of

distributions

..........

2,653,914

20,313,730

3,713,022

28,452,283

Shares

redeemed

...............................

(17,224,776)

(131,208,838)

(36,071,424)

(268,438,648)

Net

increase

(decrease)

..........................

47,048,336

$360,926,768

115,491,898

$889,240,042

Class

A1

Shares:

Shares

sold

...................................

18,028,835

$137,472,297

63,767,239

$484,727,281

Shares

issued

in

reinvestment

of

distributions

..........

18,439,678

140,779,742

42,461,763

323,900,166

Shares

redeemed

...............................

(99,365,878)

(750,973,443)

(168,900,892)

(1,276,377,054)

Net

increase

(decrease)

..........................

(62,897,365)

$(472,721,404)

(62,671,890)

$(467,749,607)

Class

C

Shares:

Shares

sold

...................................

12,176,820

$93,011,655

43,981,976

$335,147,952

Shares

issued

in

reinvestment

of

distributions

..........

1,631,348

12,426,313

3,752,742

28,558,209

Shares

redeemed

a

..............................

(24,414,146)

(186,919,077)

(49,771,041)

(375,736,013)

Net

increase

(decrease)

..........................

(10,605,978)

$(81,481,109)

(2,036,323)

$(12,029,852)

Class

R6

Shares:

Shares

sold

...................................

8,301,684

$63,385,707

15,488,743

$118,031,661

Shares

issued

in

reinvestment

of

distributions

..........

417,087

3,184,350

646,831

4,937,451

Shares

redeemed

...............................

(3,510,302)

(26,655,005)

(5,240,812)

(39,149,584)

Net

increase

(decrease)

..........................

5,208,469

$39,915,052

10,894,762

$83,819,528

Advisor

Class

Shares:

Shares

sold

...................................

88,130,518

$665,009,690

92,321,947

$701,556,237

Shares

issued

in

reinvestment

of

distributions

..........

3,979,938

30,360,206

6,874,739

52,369,097

Shares

redeemed

...............................

(25,752,693)

(195,240,918)

(67,887,140)

(511,885,626)

Net

increase

(decrease)

..........................

66,357,763

$500,128,978

31,309,546

$242,039,708

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Templeton

Distributors,

Inc.

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Franklin

California

Tax-Free

Income

Fund

Notes

to

Financial

Statements

(unaudited)

38

franklintempleton.com

Semiannual

Report

a.

Management

Fees

The

Fund

pays

an

investment

management

fee

to

Advisers

based

on

the

month-end

net

assets

of

the

Fund

as

follows:

For

the

period

ended

September

30,

2020,

the

annualized

gross

effective

investment

management

fee

rate

was

0.437%

of

the

Fund’s

average

daily

net

assets. 

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Advisers

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund’s

Class

A

and

A1

reimbursement

distribution

plans,

the

Fund

reimburses

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rates

for

each

class.

Under

the

Class

A

and

A1

reimbursement

distribution

plans,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Fund’s

Class

C

compensation

distribution

plan,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31.

 The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Fund.

These

charges

are

deducted

from

the

proceeds

of

sales

of

Fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Fund

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Fund's

shares

for

the

period:

Annualized

Fee

Rate

Net

Assets

0.625%

Up

to

and

including

$100

million

0.500%

Over

$100

million,

up

to

and

including

$250

million

0.450%

Over

$250

million,

up

to

and

including

$7.5

billion

0.440%

Over

$7.5

billion,

up

to

and

including

$10

billion

0.430%

Over

$10

billion,

up

to

and

including

$12.5

billion

0.420%

Over

$12.5

billion,

up

to

and

including

$15

billion

0.400%

Over

$15

billion,

up

to

and

including

$17.5

billion

0.380%

Over

$17.5

billion,

up

to

and

including

$20

billion

0.360%

In

excess

of

$20

billion

Class

A

....................................................................................

0.25%

Class

A1

...................................................................................

0.10%

Class

C

....................................................................................

0.65%

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..............................

$84,988

CDSC

retained

..............................................................................

$280,254

3.

Transactions

with

Affiliates

(continued)

Franklin

California

Tax-Free

Income

Fund

Notes

to

Financial

Statements

(unaudited)

39

franklintempleton.com

Semiannual

Report

e.

Transfer

Agent

Fees

Each

class

of

shares pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

The

fees

are

based

on

an

annualized

asset

based

fee

of

0.02%

plus

a

transaction

based

fee.

In

addition,

each

class reimburses

Investor

Services

for

out

of

pocket

expenses

incurred

and,

except

for

Class

R6,

reimburses

shareholder

servicing

fees

paid

to

third

parties.

These

fees

are

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

specific

to

that

class.

For

the

period

ended

September

30,

2020,

the

Fund

paid

transfer

agent

fees

of

$4,576,628,

of

which $2,130,829

was

retained

by

Investor

Services.

f.

Waiver

and

Expense

Reimbursements

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.02%

based

on

the

average

net

assets

of

the

class

until

July

31,

2021.

g.

Interfund

Transactions

The

Fund

engaged

in

purchases

and

sales

of

investments

with

funds

or

other

accounts

that

have

common

investment

managers

(or

affiliated

investment

managers),

directors,

trustees

or

officers.

During

the

period

ended

September

30,

2020,

these

purchase

and

sale

transactions

aggregated

$133,475,000

and

$165,365,000,

respectively.

4.

Expense

Offset

Arrangement

The Fund has

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund's

custodian

expenses.

During

the

period

ended

September

30,

2020,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains. 

At

March

31,

2020,

the

capital

loss

carryforwards

were

as

follows:

At

September

30,

2020,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatment

of

bond

discounts

and

wash

sales.

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

................................................................................

$441,469,367

Long

term

................................................................................

475,847,589

Total

capital

loss

carryforwards

...............................................................

$917,316,956

Cost

of

investments

..........................................................................

$14,340,201,709

Unrealized

appreciation

........................................................................

$2,401,631,072

Unrealized

depreciation

........................................................................

(54,001,414)

Net

unrealized

appreciation

(depreciation)

..........................................................

$2,347,629,658

3.

Transactions

with

Affiliates

(continued)

Franklin

California

Tax-Free

Income

Fund

Notes

to

Financial

Statements

(unaudited)

40

franklintempleton.com

Semiannual

Report

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

period

ended

September

30,

2020,

aggregated

$1,660,621,429

and

$680,473,476,

respectively.

7.

Defaulted

Securities

The

Fund

held

defaulted

securities

and/or

other

securities

for

which

the

income

has

been

deemed

uncollectible.

At

September

30,

2020,

the

aggregate

value

of

these

securities

was

$109,249,500,

representing

0.6%

of

the

Fund's

net

assets.

The

Fund

discontinues

accruing

income

on

securities

for

which

income

has

been

deemed

uncollectible

and

provides

an

estimate

for

losses

on

interest

receivable.

The

securities

have

been

identified

in

the

accompanying

Statement

of

Investments.

8.

Concentration

of

Risk

The

Fund

invests

a

large

percentage

of

its total

assets

in

obligations

of

issuers

within

its

California

and

U.S.

territories.

Such

concentration

may

subject

the

Fund

to

risks

associated

with

industrial

or

regional

matters,

and

economic,

political

or

legal

developments

occurring

within

California

and

U.S.

territories.

Investing

in

Puerto

Rico

securities

may

expose

the

Fund

to

heightened

risks

due

to

recent

adverse

economic

and

market

changes,

credit

downgrades

and

ongoing

restructuring

discussions.

In

addition,

investments

in

these

securities

are

sensitive

to

interest

rate

changes

and

credit

risk

of

the

issuer

and

may

subject

the

Fund

to

increased

market

volatility.

The

market

for

these

investments

may

be

limited,

which

may

make

them

difficult

to

buy

or

sell.

9. Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

10.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2

billion

(Global

Credit

Facility)

which

matures

on

February

5,

2021.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

period

ended

September

30,

2020,

the

Fund

did

not

use

the

Global

Credit

Facility.

11.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund’s

financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Franklin

California

Tax-Free

Income

Fund

Notes

to

Financial

Statements

(unaudited)

41

franklintempleton.com

Semiannual

Report

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund’s

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

At

September

30,

2020,

all

of

the

Fund’s

investments

in

financial

instruments

carried

at

fair

value

were

valued

using

Level

2

inputs.

12.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

issued

Accounting

Standards

Update

(ASU)

No.

2020-04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

The

amendments

in

the

ASU

provides

optional

temporary

financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

(LIBOR)

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021.

The

ASU

is

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022.

Management

has

reviewed

the

requirements

and

believes

the

adoption

of

this

ASU

will

not

have

a

material

impact

on

the

financial

statements.

13.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the

financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

Abbreviations

Selected

Portfolio

ABAG

Association

of

Bay

Area

Governments

AGMC

Assured

Guaranty

Municipal

Corp.

AMBAC

American

Municipal

Bond

Assurance

Corp.

BAM

Build

America

Mutual

Assurance

Co.

COP

Certificate

of

Participation

ETM

Escrowed

to

Maturity

FGIC

Financial

Guaranty

Insurance

Co.

FHA

Federal

Housing

Administration

FHLMC

Federal

Home

Loan

Mortgage

Corp.

FNMA

Federal

National

Mortgage

Association

FRN

Floating

Rate

Note

GNMA

Government

National

Mortgage

Association

GO

General

Obligation

LOC

Letter

of

Credit

NATL

National

Reinsurance

Corp.

SPA

Standby

Purchase

Agreement

11.

Fair

Value

Measurements

(continued)

Franklin

California

Tax-Free

Income

Fund

Shareholder

Information

42

franklintempleton.com

Semiannual

Report

Liquidity

Risk

Management

Program

Each

of

the

Funds

has

adopted

and

implemented

a

written

Liquidity

Risk

Management

Program

(the

“LRMP”)

as

required

by

Rule

22e-4

under

the

Investment

Company

Act

of

1940

(the

“Liquidity

Rule”).

The

LRMP

is

designed

to

assess

and

manage

each

Fund’s

liquidity

risk,

which

is

defined

as

the

risk

that

the

Fund

could

not

meet

requests

to

redeem

shares

issued

by

the

Fund

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

In

accordance

with

the

Liquidity

Rule,

the

LRMP

includes

policies

and

procedures

that

provide

for:

(1)

assessment,

management,

and

review

(no

less

frequently

than

annually)

of

each

Fund’s

liquidity

risk;

(2)

classification

of

each

Fund’s

portfolio

holdings

into

one

of

four

liquidity

categories

(Highly

Liquid,

Moderately

Liquid,

Less

Liquid,

and

Illiquid);

(3)

for

Funds

that

do

not

primarily

hold

assets

that

are

Highly

Liquid,

establishing

and

maintaining

a

minimum

percentage

of

the

Fund’s

net

assets

in

Highly

Liquid

investments

(called

a

“Highly

Liquid

Investment

Minimum”

or

“HLIM”);

and

(4)

prohibiting

the

Fund’s

acquisition

of

Illiquid

investments

that

would

result

in

the

Fund

holding

more

than

15%

of

its

net

assets

in

Illiquid

assets.

The

LRMP

also

requires

reporting

to

the

SEC

(on

a

non-public

basis)

and

to

the

Board

if

the

Fund’s

holdings

of

Illiquid

assets

exceed

15%

of

the

Fund’s

net

assets.

Funds

with

HLIMs

must

have

procedures

for

addressing

HLIM

shortfalls,

including

reporting

to

the

Board

and,

with

respect

to

HLIM

shortfalls

lasting

more

than

seven

consecutive

calendar

days,

reporting

to

the

Securities

and

Exchange

Commission

(“SEC”)

(on

a

non-public

basis).

The

Funds’

Board

of

Trustees

approved

the

appointment

of

the

Director

of

Liquidity

Risk

within

the

Investment

Risk

Management

Group

(the

“IRMG”)

as

the

Administrator

of

the

LRMP.

The

IRMG

maintains

the

Investment

Liquidity

Committee

(the

“ILC”)

to

provide

oversight

and

administration

of

policies

and

procedures

governing

liquidity

risk

management

for

FT

products

and

portfolios.

The

ILC

includes

representatives

from

Franklin

Templeton’s

Risk,

Trading,

Global

Compliance,

Investment

Compliance,

Investment

Operations,

Valuation

Committee

and

Product

Management

groups.

In

assessing

and

managing

each

Fund’s

liquidity

risk,

the

ILC

considers,

as

relevant,

a

variety

of

factors,

including

the

Fund’s

investment

strategy

and

the

liquidity

of

its

portfolio

investments

during

both

normal

and

reasonably

foreseeable

stressed

conditions;

its

short

and

long-term

cash

flow

projections;

and

its

cash

holdings

and

access

to

other

funding

sources

including

the

Funds’

interfund

lending

facility

and

line

of

credit.

Classification

of

the

Fund’s

portfolio

holdings

in

the

four

liquidity

categories

is

based

on

the

number

of

days

it

is

reasonably

expected

to

take

to

convert

the

investment

to

cash

(for

Highly

Liquid

and

Moderately

Liquid

holdings)

or

sell

or

dispose

of

the

investment

(for

Less

Liquid

and

Illiquid

investments),

in

current

market

conditions

without

significantly

changing

the

investment’s

market

value.

The

Fund

primarily

holds

liquid

assets

that

are

defined

under

the

Liquidity

Rule

as

"Highly

Liquid

Investments,"

and

therefore

is

not

required

to

establish

an

HLIM.

Highly

Liquid

Investments

are

defined

as

cash

and

any

investment

reasonably

expected

to

be

convertible

to

cash

in

current

market

conditions

in

three

business

days

or

less

without

the

conversion

to

cash

significantly

changing

the

market

value

of

the

investment.

At

meetings

of

the

Funds’

Board

of

Trustees

held

in

May

2020,

the

Program

Administrator

provided

a

written

report

to

the

Board

addressing

the

adequacy

and

effectiveness

of

the

program

during

the

period

December

1,

2018

to

December

31,

2019.

The

Program

Administrator

report

concluded

that

(i.)

the

LRMP,

as

adopted

and

implemented,

remains

reasonably

designed

to

assess

and

manage

each

Fund’s

liquidity

risk;

(ii.)

the

LRMP,

including

the

Highly

Liquid

Investment

Minimum

(“HLIM”)

where

applicable,

was

implemented

and

operated

effectively

to

achieve

the

goal

of

assessing

and

managing

each

Fund’s

liquidity

risk;

and

(iii.)

each

Fund

was

able

to

meet

requests

for

redemption

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

At

the

same

time,

the

Program

Administrator

also

presented

the

Fund

Board

of

Trustees

an

update

on

liquidity

during

the

first

quarter

of

2020

in

relation

to

the

COVID-19

pandemic.

Proxy

Voting

Policies

and

Procedures

The

Fund’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Fund’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Fund’s

Franklin

California

Tax-Free

Income

Fund

Shareholder

Information

43

franklintempleton.com

Semiannual

Report

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Statement

of

Investments

The

Fund

files

a

complete

statement

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.

gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

Householding

of

Reports

and

Prospectuses

You

will

receive

the

Fund’s

financial

reports

every

six

months

as

well

as

an

annual

updated

summary

prospectus

(prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

1112

S

11/20

©

2020

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Semiannual

Report

and

Shareholder

Letter

Franklin

California

Tax-Free

Income

Fund

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Templeton

Distributors,

Inc.

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

Item 2. Code of Ethics.

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.

(c) N/A

(d) N/A

(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

Item 3. Audit Committee Financial Expert.

(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.

(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.

Item 4. Principal Accountant Fees and Services.              N/A

Item 5. Audit Committee of Listed Registrants.        N/A            

Item 6. Schedule of Investments.                      N/A

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.               N/A

Item 8. Portfolio Managers of Closed-End Management Investment Companies.                                               N/A

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and

Affiliated Purchasers.        N/A

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.

Item 11. Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures.

The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.

(b) Changes in Internal Controls.

During the period covered by this report, a third-party service provider commenced performing certain accounting and administrative services for the Registrant that are subject to Franklin Templeton’s oversight.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company.                            N/A

Item 13. Exhibits.

(a) (1) Code of Ethics

Code of Ethics

(a) (2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of

Matthew T. Hinkle

, Chief Executive Officer - Finance and Administration, and Gaston Gardey, Chief Financial Officer and Chief Accounting Officer

Section 302

(b)   Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of

Matthew T. Hinkle

, Chief Executive Officer - Finance and Administration, and Gaston Gardey, Chief Financial Officer and Chief Accounting Officer

Section 906

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

FRANKLIN CALIFORNIA TAX-FREE INCOME FUND

By ___S\MATTHEW T. HINKLE ______________________

      Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date  November 25, 2020

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By ___S\MATTHEW T. HINKLE ____________________

      Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date  November 25, 2020

By ___S\GASTON GARDEY ____________________

      Gaston Gardey

      Chief Financial Officer and Chief Accounting Officer

Date  November 25, 2020