BNY Mellon California Amt-free Municipal Bond Fund N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number			811-3757
	Dreyfus Premier California AMT-Free Municipal Bond Fund, Inc.
	(Exact name of Registrant as specified in charter)
	c/o The Dreyfus Corporation 200 Park Avenue New York, New York 10166
	(Address of principal executive offices) (Zip code)
	John Pak, Esq. 200 Park Avenue New York, New York 10166
	(Name and address of agent for service)
Registrant's telephone number, including area code:				(212) 922-6000
Date of fiscal year end:		5/31
Date of reporting period:		11/30/14

FORM N-CSR

Item 1.       Reports to Stockholders.

Dreyfus 

California AMT-Free 

Municipal Bond Fund 

SEMIANNUAL REPORT November 30, 2014

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The views expressed in this report reflect those of the portfolio manager only through the end of the period covered and do not necessarily represent the views of Dreyfus or any other person in the Dreyfus organization. Any such views are subject to change at any time based upon market or other conditions and Dreyfus disclaims any responsibility to update such views.These views may not be relied on as investment advice and, because investment decisions for a Dreyfus fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dreyfus fund.

Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value 

	Contents
	THE FUND
2	A Letter from the President
3	Discussion of Fund Performance
6	Understanding Your Fund’s Expenses
6	Comparing Your Fund’s Expenses With Those of Other Funds
7	Statement of Investments
22	Statement of Assets and Liabilities
23	Statement of Operations
24	Statement of Changes in Net Assets
26	Financial Highlights
31	Notes to Financial Statements
42	Information About the Renewal of the Fund’s Management Agreement
	FOR MORE INFORMATION
	Back Cover

Dreyfus
California AMT-Free
Municipal Bond Fund

The Fund

A LETTER FROM THE PRESIDENT

Dear Shareholder:

We are pleased to present this semiannual report for Dreyfus California AMT-Free Municipal Bond Fund, covering the six-month period from June 1, 2014, through November 30, 2014. For information about how the fund performed during the reporting period, as well as general market perspectives, we provide a Discussion of Fund Performance on the pages that follow.

Municipal bonds generally continued to gain ground over the past six months, reinforcing a rally that began earlier in 2014 when long-term interest rates moderated due to geopolitical and economic concerns. These developments drove prices of long-term municipal securities higher, and favorable supply-and-demand dynamics helped keep yields low when economic growth accelerated. Meanwhile, improving economic fundamentals have enabled many states and municipalities to shore up their fiscal conditions.

While we remain cautiously optimistic regarding the municipal bond market’s prospects, we believe that selectivity is likely to become more important to investment success. Long-term rates could rise if, as we anticipate, the economy continues to accelerate. On the other hand, intensifying geopolitical turmoil and other factors could dampen the potentially adverse effects of a stronger domestic economic recovery, and rising investor demand for tax-advantaged investments may continue to support municipal bond prices. As always, we encourage you to discuss our observations with your financial adviser to assess their potential impact on your investments.

Thank you for your continued confidence and support.

J. Charles Cardona
President
The Dreyfus Corporation
December 15, 2014

2

DISCUSSION OF FUND PERFORMANCE

For the period of June 1, 2014, through November 30, 2014, as provided by Jeffrey B. Burger, Primary Portfolio Manager

Fund and Market Performance Overview

For the six-month period ended November 30, 2014, Dreyfus California AMT-Free Municipal Bond Fund’s Class A shares produced a total return of 2.63%, Class C shares returned 2.31%, Class I shares returned 2.82%, Class Y shares returned 2.81%, and Class Z shares returned 2.74%.¹ In comparison, the Barclays Municipal Bond Index (the “Index”), the fund’s benchmark index, which is composed of bonds issued nationally and not solely within California, achieved a total return of 2.45% for the same period.²

Municipal bonds rallied over the reporting period amid moderating long-term interest rates and favorable supply-and-demand dynamics.The fund’s Class A, Class I, Class Y, and Class Z shares outperformed the benchmark, mainly due to above-average returns from California municipal bonds compared to national averages. The fund’s relative performance also was boosted by a relatively long average duration and overweighted exposure to revenue-backed bonds.

The Fund’s Investment Approach

The fund seeks as high a level of current income exempt from federal and California state income taxes as is consistent with the preservation of capital.To pursue its goal, the fund normally invests substantially all of its assets in municipal bonds that provide income exempt from federal and California state personal income taxes.The fund also seeks to provide income exempt from the federal Alternative Minimum Tax. The fund will invest at least 80% of its assets in investment-grade municipal bonds or the unrated equivalent as determined by Dreyfus.The fund may invest up to 20% of its assets in municipal bonds rated below investment grade (“junk” bonds) or the unrated equivalent as determined by Dreyfus. The dollar-weighted average maturity of the fund’s portfolio normally exceeds 10 years, but the fund’s average portfolio maturity is not restricted.

The Fund 3

DISCUSSION OF FUND PERFORMANCE (continued)

We focus on identifying undervalued sectors and securities, and we minimize the use of interest rate forecasting. We select municipal bonds by using fundamental credit analysis to estimate the relative value and attractiveness of various sectors and securities and to exploit pricing inefficiencies in the municipal bond market. We actively trade among various sectors, such as pre-refunded, general obligation, and revenue, based on their apparent relative values.

Economic and Technical Forces Buoyed Municipal Bonds

Municipal bonds rallied in the months prior to the reporting period as long-term interest rates moderated amid concerns that harsh winter weather in the United States and economic weakness in international markets might derail the U.S. economic recovery. Indeed, the economy contracted over the first quarter of 2014.

The economic recovery got back on track as U.S. GDP rebounded at a 4.6% annualized rate during the second quarter of the year and an estimated 3.9% for the third quarter. While accelerating economic growth typically sends inflationary pressures and interest rates higher, favorable supply-and-demand dynamics kept long-term interest rates low. Less refinancing activity produced a limited supply of newly issued tax-exempt securities, while demand intensified from investors seeking higher after-tax income. Longer term and lower rated municipal securities fared particularly well in this environment.

The economic rebound produced better underlying credit conditions for most states and municipalities. In California, better economic conditions and higher tax rates resulted in credit rating upgrades.

Duration and Selection Strategies Buoyed Fund Results

The fund’s relative performance benefited from strength among California municipal bonds, which rallied more sharply than national averages. In addition, the fund achieved positive results from our interest rate strategies, as a relatively long average duration and a focus on longer maturities captured more of the benefits of falling long-term interest rates. Our security selection strategy also proved effective among revenue bonds backed by hospitals, airports, and water-and-sewer facilities.

In contrast, the fund’s relative performance was dampened by holdings from the Commonwealth of Puerto Rico, which are exempt from federal and California state income taxes. Puerto Rico bonds were hurt by concerns surrounding the U.S.

4

territory’s troubled economy and unfunded pension liabilities.We took advantage of periodic bouts of market strength to sell the fund’s Puerto Rico positions. Underweighted positions in revenue bonds backed by housing developments, and overweighted exposure to bonds issued on behalf of power generation facilities, also weighed on relative performance.

Maintaining a Constructive Investment Posture

The U.S. and California economic recoveries have gained momentum, but disappointing global growth and muted inflation have kept interest rates low. Meanwhile, municipal bond market fundamentals have remained strong. Although the supply of newly issued municipal bonds recently began to increase, we expect any additional issuance to be absorbed by robust investor demand. Therefore, we have maintained the fund’s focus on generating competitive levels of current income, including an emphasis on longer dated revenue bonds. However, in light of potentially higher short-term interest rates in 2015, we may begin to shift the fund’s focus toward higher quality securities.

December 15, 2014

Bond funds are subject generally to interest rate, credit, liquidity, and market risks, to varying degrees, all of which are more fully described in the fund’s prospectus. Generally, all other factors being equal, bond prices are inversely related to interest-rate changes, and rate increases can cause price declines.

High yield bonds involve increased credit and liquidity risks compared with investment grade bonds and are considered speculative in terms of the issuer’s ability to pay interest and repay principal on a timely basis.

The use of derivatives involves risk different from, or possibly greater than, the risk associated with investing directly in the underlying assets. Derivatives can be highly volatile, illiquid, and difficult to value, and there is the risk that the changes in the value of a derivative held by the fund will not correlate with the underlying instruments or the fund’s other investments.

1 Total return includes reinvestment of dividends and any capital gains paid, and does not take into consideration 

the maximum initial sales charge in the case of Class A shares, or the applicable contingent deferred sales charges 

imposed on redemptions in the case of Class C shares. Had these charges been reflected, returns would have been 

lower. Class I, Class Y, and Class Z (which is closed to new investors) are not subject to any initial or deferred 

sales charge. Past performance is no guarantee of future results. Share price, yield, and investment return fluctuate 

such that upon redemption, fund shares may be worth more or less than their original cost. Income may be subject 

to state and local taxes for non-California residents. Capital gains, if any, are fully taxable. Class Y shares returns 

are since inception 7/1/13. 

SOURCE: LIPPER INC. — Reflects reinvestment of dividends and, where applicable, capital gain distributions. 

The Barclays Municipal Bond Index is a widely accepted, unmanaged and geographically unrestricted total return 

performance benchmark for the long-term, investment-grade, tax-exempt bond market. Index returns do not reflect fees 

and expenses associated with operating a mutual fund. 

The Fund 5

UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.

Review your fund’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus California AMT-Free Municipal Bond Fund from June 1, 2014 to November 30, 2014. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment
assuming actual returns for the six months ended November 30, 2014

		Class A		Class C		Class I		Class Y		Class Z
Expenses paid per $1,000†	$	4.72	$	8.62	$	3.46	$	3.51	$	3.66
Ending value (after expenses)	$	1,026.30	$	1,023.10	$	1,028.20	$	1,028.10	$	1,027.40

COMPARING YOUR FUND’S EXPENSES
WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC’s method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment
assuming a hypothetical 5% annualized return for the six months ended November 30, 2014

		Class A		Class C		Class I		Class Y		Class Z
Expenses paid per $1,000†	$	4.71	$	8.59	$	3.45	$	3.50	$	3.65
Ending value (after expenses)	$	1,020.41	$	1,016.55	$	1,021.66	$	1,021.61	$	1,021.46

† Expenses are equal to the fund’s annualized expense ratio of .93% for Class A, 1.70% for Class C, .68% for 

Class I, .69% for ClassY and .72% for Class Z, multiplied by the average account value over the period, multiplied 

by 183/365 (to reflect the one-half year period). 

6

STATEMENT OF INVESTMENTS
November 30, 2014 (Unaudited)
Long-Term Municipal	Coupon	Maturity	Principal
Investments—99.4%	Rate (%)	Date	Amount ($)	Value ($)
California—98.2%
ABAG Finance Authority for
Nonprofit Corporations,
Revenue (Sharp HealthCare)	6.00	8/1/30	5,000,000	6,119,450
ABAG Finance Authority for
Nonprofit Corporations,
Revenue (Sharp HealthCare)	5.00	8/1/43	3,000,000	3,357,870
Bay Area Toll Authority,
San Francisco Bay Area
Subordinate Lien Toll
Bridge Revenue	5.00	4/1/43	7,500,000	8,379,300
Bay Area Toll Authority,
San Francisco Bay Area Toll
Bridge Revenue	5.25	4/1/24	17,580,000	20,764,441
Brentwood Infrastructure Financing
Authority, Water Revenue	5.75	7/1/38	4,250,000	4,773,727
California,
GO	5.00	8/1/22	5,000,000	5,426,400
California,
GO (Various Purpose)	5.00	11/1/23	5,000,000	5,945,450
California,
GO (Various Purpose)	5.25	2/1/29	13,835,000	16,364,176
California,
GO (Various Purpose)	5.00	10/1/29	5,250,000	5,823,930
California,
GO (Various Purpose)	5.25	3/1/30	15,000,000	17,425,350
California,
GO (Various Purpose)	5.75	4/1/31	4,500,000	5,303,970
California,
GO (Various Purpose)	5.25	9/1/31	25,000,000	29,428,250
California,
GO (Various Purpose)	5.25	9/1/32	19,500,000	22,954,035
California,
GO (Various Purpose)	5.25	10/1/32	9,170,000	10,812,805
California,
GO (Various Purpose)	6.00	3/1/33	3,000,000	3,672,420
California,
GO (Various Purpose)	6.50	4/1/33	30,000,000	36,656,400
California,
GO (Various Purpose)	5.50	11/1/35	10,000,000	11,814,500

The Fund 7

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Long-Term Municipal	Coupon	Maturity	Principal
Investments (continued)	Rate (%)	Date	Amount ($)		Value ($)
California (continued)
California,
GO (Various Purpose)	5.00	2/1/38	5,000,000		5,584,600
California,
GO (Various Purpose)	5.50	3/1/40	17,500,000		20,131,650
California County Tobacco
Securitization Agency, Tobacco
Settlement Asset-Backed
Refunding Bonds (Kern County
Tobacco Funding Corporation)	5.00	6/1/34	5,000,000		5,430,800
California Department of Water
Resources, Water System
Revenue (Central Valley Project)	5.00	12/1/26	230,000		261,825
California Department of Water
Resources, Water System
Revenue (Central Valley Project)	5.00	12/1/27	475,000		540,018
California Department of Water
Resources, Water System
Revenue (Central Valley
Project) (Prerefunded)	5.00	6/1/18	7,270,000	a	8,344,215
California Department of Water
Resources, Water System
Revenue (Central Valley
Project) (Prerefunded)	5.00	6/1/18	11,125,000	a	12,768,830
California Educational Facilities
Authority, Revenue (Pooled
College and University
Projects) (Escrowed to Maturity)	5.63	6/30/23	135,000		171,682
California Educational Facilities
Authority, Revenue (University
of Southern California)	5.25	10/1/38	5,000,000		5,644,350
California Health Facilities
Financing Authority, Revenue
(Catholic Healthcare West)
(Prerefunded)	5.63	7/1/15	2,000,000	a	2,064,800
California Health Facilities
Financing Authority, Revenue
(City of Hope)	5.00	11/15/23	1,650,000		1,947,841

8

Long-Term Municipal	Coupon	Maturity	Principal
Investments (continued)	Rate (%)	Date	Amount ($)	Value ($)
California (continued)
California Health Facilities
Financing Authority, Revenue
(City of Hope)	5.00	11/15/24	1,600,000	1,871,952
California Health Facilities
Financing Authority, Revenue
(Lucile Salter Packard
Children’s Hospital at Stanford)	5.00	8/15/25	5,855,000	6,866,393
California Health Facilities
Financing Authority, Revenue
(Providence Health and Services)	5.00	10/1/30	3,500,000	4,113,795
California Health Facilities
Financing Authority, Revenue
(Providence Health and Services)	5.00	10/1/31	4,430,000	5,186,201
California Health Facilities
Financing Authority, Revenue
(Rady Children’s Hospital—
San Diego)	5.25	8/15/41	8,500,000	9,588,680
California Health Facilities
Financing Authority, Revenue
(Saint Joseph Health System)	5.00	7/1/37	7,500,000	8,491,800
California Health Facilities
Financing Authority, Revenue
(Scripps Health)	5.00	11/15/36	7,525,000	8,450,349
California Health Facilities
Financing Authority,
Revenue (Stanford
Hospital and Clinics)	5.00	8/15/42	1,000,000	1,115,980
California Health Facilities
Financing Authority, Revenue
(Sutter Health)	5.25	8/15/22	6,000,000	6,915,480
California Health Facilities
Financing Authority, Revenue
(Sutter Health)	5.25	8/15/31	3,500,000	4,001,795
California Housing Finance Agency,
Home Mortgage Revenue
(Collateralized; FNMA)	5.50	8/1/38	7,455,000	7,602,684

The Fund 9

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Long-Term Municipal	Coupon	Maturity	Principal
Investments (continued)	Rate (%)	Date	Amount ($)		Value ($)
California (continued)
California Municipal Finance
Authority, COP (Community
Hospitals of Central
California Obligated Group)	5.25	2/1/27	6,750,000		7,136,640
California Pollution Control
Financing Authority,
Revenue (San Jose Water
Company Project)	5.10	6/1/40	5,500,000		6,083,275
California Pollution Control
Financing Authority, Water
Facilities Revenue (American
Water Capital Corporation Project)	5.25	8/1/40	7,500,000	b	8,059,950
California State Public Works
Board, LR (Department
of Corrections and
Rehabilitation) (Various
Correctional Facilities)	5.00	9/1/26	5,000,000		5,971,850
California State Public Works
Board, LR (Judicial Council of
California) (Various Judicial
Council Projects)	5.00	3/1/25	1,795,000		2,112,033
California State Public Works
Board, LR (Judicial Council of
California) (Various Judicial
Council Projects)	5.00	12/1/31	10,000,000		11,463,100
California State University
Trustees, Systemwide Revenue	5.00	11/1/27	2,510,000		2,812,430
California State University
Trustees, Systemwide Revenue	5.00	11/1/28	5,000,000		5,584,200
California Statewide Communities
Development Authority, COP
(The Internext Group)	5.38	4/1/30	10,100,000		10,129,492
California Statewide Communities
Development Authority, Revenue
(899 Charleston Project)	5.25	11/1/44	2,500,000		2,522,025
California Statewide Communities
Development Authority, Revenue
(American Baptist Homes
of the West)	2.10	10/1/19	2,000,000		2,000,720

10

Long-Term Municipal	Coupon	Maturity	Principal
Investments (continued)	Rate (%)	Date	Amount ($)	Value ($)
California (continued)
California Statewide Communities
Development Authority, Revenue
(Buck Institute for Research
on Aging) (Insured; Assured
Guaranty Municipal Corp.)	5.00	11/15/34	2,390,000	2,696,852
California Statewide Communities
Development Authority, Revenue
(Cottage Health System
Obligated Group)	5.25	11/1/30	3,750,000	4,219,987
California Statewide Communities
Development Authority, Revenue
(Cottage Health System
Obligated Group)	5.00	11/1/40	11,940,000	12,837,649
California Statewide Communities
Development Authority, Revenue
(Henry Mayo Newhall Memorial
Hospital) (Insured; Assured
Guaranty Municipal Corp.)	5.25	10/1/43	2,100,000	2,366,343
California Statewide Communities
Development Authority, Revenue
(Kaiser Permanente)	5.00	4/1/42	3,000,000	3,309,930
California Statewide Communities
Development Authority, Revenue
(Saint Joseph Health System)
(Insured; FGIC)	5.75	7/1/47	10,000,000	11,298,900
California Statewide Communities
Development Authority, Revenue
(Saint Joseph Health System)
(Insured; National Public
Finance Guarantee Corp.)	5.13	7/1/24	5,000,000	5,648,100
California Statewide Communities
Development Authority, School
Facility Revenue (Aspire
Public Schools)	6.00	7/1/40	7,975,000	8,187,374
California Statewide Communities
Development Authority, Student
Housing Revenue (CHF-Irvine,
LLC-UCI East Campus
Apartments, Phase II)	5.75	5/15/32	4,000,000	4,407,880

The Fund 11

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Long-Term Municipal	Coupon	Maturity	Principal
Investments (continued)	Rate (%)	Date	Amount ($)		Value ($)
California (continued)
Chabot-Las Positas Community
College District, GO
(Insured; AMBAC)	0.00	8/1/22	3,000,000	c	2,209,110
Coast Community College District,
GO (Insured; Assured Guaranty
Municipal Corp.)	5.00	8/1/29	15,565,000		17,485,721
Delano,
COP (Delano Regional
Medical Center)	4.00	1/1/16	1,245,000		1,282,549
El Dorado Irrigation District,
Revenue (Insured; Assured
Guaranty Municipal Corp.)	5.00	3/1/27	1,250,000		1,472,700
El Dorado Irrigation District,
Revenue (Insured; Assured
Guaranty Municipal Corp.)	5.00	3/1/28	1,000,000		1,168,070
Golden State Tobacco
Securitization Corporation,
Enhanced Tobacco Settlement
Asset-Backed Bonds (Insured;
Assured Guaranty Municipal Corp.)	4.55	6/1/22	1,725,000		1,893,291
Golden State Tobacco
Securitization Corporation,
Tobacco Settlement
Asset-Backed Bonds	4.50	6/1/27	10,545,000		9,961,440
Golden State Tobacco
Securitization Corporation,
Tobacco Settlement
Asset-Backed Bonds	5.13	6/1/47	8,000,000		6,143,760
Golden State Tobacco
Securitization Corporation,
Tobacco Settlement
Asset-Backed Bonds	5.75	6/1/47	12,500,000		10,547,875
Grossmont Union High School
District, GO (Insured; Assured
Guaranty Municipal Corp.)	0.00	8/1/21	4,375,000	c	3,741,063
Grossmont Union High School
District, GO (Insured; Assured
Guaranty Municipal Corp.)	0.00	8/1/22	4,605,000	c	3,803,638

12

Long-Term Municipal	Coupon	Maturity	Principal
Investments (continued)	Rate (%)	Date	Amount ($)		Value ($)
California (continued)
Grossmont Union High School
District, GO (Insured; Assured
Guaranty Municipal Corp.)	0.00	8/1/23	4,850,000	c	3,835,041
Grossmont Union High School
District, GO (Insured; Assured
Guaranty Municipal Corp.)	0.00	8/1/26	3,265,000	c	2,269,632
Irvine Community Facilities
District Number 2013-3
Improvement Area Number 1,
Special Tax Revenue (Great Park)	5.00	9/1/44	2,500,000		2,783,550
JPMorgan Chase Putters/Drivers
Trust (Series 4354)
Non-recourse (Riverside County
Transportation Commission,
Sales Tax Revenue)	5.25	6/1/21	7,500,000	b,d	8,713,050
JPMorgan Chase Putters/Drivers
Trust (Series 4361)
Non-recourse (Los Angeles
Department of Water and Power,
Water System Revenue)	5.00	7/1/20	12,000,000	b,d	13,466,760
Jurupa Public Financing Authority,
Special Tax Revenue	5.00	9/1/42	3,420,000		3,765,010
Los Angeles Community Facilities
District Number 4, Special Tax
Revenue (Playa Vista-Phase 1)	5.00	9/1/29	1,190,000		1,379,626
Los Angeles Community Facilities
District Number 4, Special Tax
Revenue (Playa Vista-Phase 1)	5.00	9/1/30	1,110,000		1,284,847
Los Angeles County Regional
Financing Authority, Revenue
(MonteCedro Inc. Project)	5.00	11/15/44	2,000,000		2,195,260
Los Angeles Department of
Airports, Senior Revenue (Los
Angeles International Airport)	5.25	5/15/26	5,000,000		5,939,150
Los Angeles Department of
Airports, Senior Revenue (Los
Angeles International Airport)	5.00	5/15/29	3,915,000		4,535,293

The Fund 13

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Long-Term Municipal	Coupon	Maturity	Principal
Investments (continued)	Rate (%)	Date	Amount ($)		Value ($)
California (continued)
Los Angeles Department of
Airports, Senior Revenue (Los
Angeles International Airport)	5.25	5/15/29	16,090,000		18,680,812
Los Angeles Department of
Airports, Senior Revenue (Los
Angeles International Airport)	5.00	5/15/35	25,000,000		28,302,500
Los Angeles Department of
Airports, Senior Revenue (Los
Angeles International Airport)	5.00	5/15/38	3,500,000		3,965,220
Los Angeles Harbor Department,
Revenue	5.25	8/1/25	26,055,000		30,803,263
Los Angeles Harbor Department,
Revenue	5.00	8/1/39	2,050,000		2,363,158
Metropolitan Water District of
Southern California, Water
Revenue	5.00	10/1/34	7,390,000		8,517,492
Metropolitan Water District of
Southern California, Water
Revenue	5.00	1/1/39	5,000,000		5,604,200
Midpeninsula Regional Open Space
District Financing Authority,
Revenue (Insured; AMBAC)
(Escrowed to Maturity)	0.00	9/1/15	2,825,000	c	2,821,045
Murrieta Valley Unified School
District, GO (Insured;
National Public Finance
Guarantee Corp.)	0.00	9/1/21	4,950,000	c	4,158,842
Natomas Unified School District,
GO (Insured; National Public
Finance Guarantee Corp.)	5.95	9/1/21	2,500,000		2,808,675
North Natomas Community
Facilities District Number 4,
Special Tax Bonds	5.25	9/1/26	2,760,000		3,230,028
Northern California Power Agency,
Revenue (Hydroelectric Project
Number 1) (Insured; AMBAC)
(Prerefunded)	7.00	1/1/16	670,000	a	706,153
Northern California Power Agency,
Revenue (Hydroelectric Project
Number 1) (Insured; AMBAC)
(Prerefunded)	7.50	7/1/21	375,000	a	487,834

14

Long-Term Municipal	Coupon	Maturity	Principal
Investments (continued)	Rate (%)	Date	Amount ($)		Value ($)
California (continued)
Northern California Power Agency,
Revenue (Hydroelectric Project
Number 1) (Insured; National
Public Finance Guarantee Corp.)	6.30	7/1/18	18,355,000		20,354,043
Oakland Unified School District,
GO	6.63	8/1/38	5,000,000		6,182,500
Pomona Redevelopment Agency,
Tax Allocation Revenue
(West Holt Avenue
Redevelopment Project)	5.50	5/1/32	3,000,000		3,704,250
Poway Unified School District,
School Facilities Improvement
District Number 2007-1, GO	0.00	8/1/35	12,850,000	c	5,310,520
Sacramento County,
Airport System Senior Revenue	5.00	7/1/24	5,090,000		5,775,419
Sacramento County,
Airport System Senior Revenue	5.13	7/1/25	5,890,000		6,700,052
Sacramento County Sanitation
Districts Financing Authority,
Revenue (Sacramento Regional
County Sanitation District)	5.00	12/1/26	7,000,000		8,300,180
Sacramento County Water Financing
Authority, Revenue (Sacramento
County Water Agency Zones 40
and 41 Water System Project)
(Insured; National Public
Finance Guarantee Corp.)	5.00	6/1/25	8,500,000		9,349,065
Sacramento Municipal Utility
District, Electric Revenue	5.00	8/15/28	2,500,000		2,887,550
San Bernardino County,
COP (Capital Facilities
Project) (Escrowed to Maturity)	6.88	8/1/24	5,000,000		6,705,550
San Diego County,
COP (Burnham Institute for
Medical Research)	5.00	9/1/24	2,265,000		2,332,746
San Diego County,
COP (Burnham Institute for
Medical Research)	5.00	9/1/34	9,880,000		10,160,790
San Diego County Regional Airport
Authority, Subordinate
Airport Revenue	5.00	7/1/34	3,000,000		3,365,250

The Fund 15

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Long-Term Municipal	Coupon	Maturity	Principal
Investments (continued)	Rate (%)	Date	Amount ($)	Value ($)
California (continued)
San Diego County Regional
Transportation Commission,
Sales Tax Revenue	5.00	4/1/44	10,000,000	11,526,000
San Diego County Water Authority,
Water Revenue	5.00	5/1/31	4,935,000	5,642,531
San Diego Public Facilities
Financing Authority, Senior
Sewer Revenue	5.25	5/15/34	6,045,000	6,930,290
San Diego Public Facilities
Financing Authority,
Water Revenue	5.25	8/1/28	6,000,000	7,078,080
San Francisco City and County
Airport Commission, Second
Series Revenue (San Francisco
International Airport)	5.00	5/1/23	6,775,000	8,001,614
San Francisco City and County
Airport Commission, Second
Series Revenue (San Francisco
International Airport)	5.25	5/1/26	4,000,000	4,545,520
San Francisco City and County
Airport Commission, Second
Series Revenue (San Francisco
International Airport)	5.00	5/1/28	2,000,000	2,293,820
San Francisco City and County
Airport Commission, Second
Series Revenue (San Francisco
International Airport)	5.00	5/1/29	2,000,000	2,288,040
San Francisco City and County
Public Utilities Commission,
San Francisco Water Revenue	5.00	11/1/37	10,000,000	11,290,200
San Francisco City and County
Public Utilities Commission,
San Francisco Water Revenue
(Insured; Assured Guaranty
Municipal Corp.)	5.00	11/1/24	13,185,000	14,029,895

16

Long-Term Municipal	Coupon	Maturity	Principal
Investments (continued)	Rate (%)	Date	Amount ($)		Value ($)
California (continued)
San Francisco City and County
Redevelopment Agency Community
Facilities District Number 6,
Special Tax Revenue (Mission
Bay South Public Improvements)	0.00	8/1/18	445,000	c	369,666
San Francisco City and County
Redevelopment Agency Community
Facilities District Number 6,
Special Tax Revenue (Mission
Bay South Public Improvements)	5.00	8/1/18	1,585,000		1,791,621
San Francisco City and County
Redevelopment Agency Community
Facilities District Number 6,
Special Tax Revenue (Mission
Bay South Public Improvements)	0.00	8/1/21	500,000	c	346,595
San Joaquin Hills Transportation
Corridor Agency, Senior Lien
Toll Road Revenue	5.00	1/15/50	5,000,000		5,255,350
Santa Margarita Water District
Community Facilities District
Number 99-1, Special Tax
Revenue (Talega)	5.00	9/1/27	2,000,000		2,352,160
Santa Margarita Water District
Community Facilities
District Number 2013-1,
Special Tax Revenue
(Village of Sendero)	5.63	9/1/43	7,000,000		7,833,070
South Orange County Public
Financing Authority, Special
Tax Senior Lien Revenue
(Ladera Ranch)	5.00	8/15/29	1,500,000		1,722,045
South Orange County Public
Financing Authority, Special
Tax Senior Lien Revenue
(Ladera Ranch)	5.00	8/15/30	1,000,000		1,142,730

The Fund 17

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Long-Term Municipal	Coupon	Maturity	Principal
Investments (continued)	Rate (%)	Date	Amount ($)	Value ($)
California (continued)
Southern California Public Power
Authority, Revenue (Canyon
Power Project)	5.25	7/1/27	7,485,000	8,729,905
Southern California Public Power
Authority, Revenue (Linden
Wind Energy Project)	5.00	7/1/28	3,145,000	3,668,957
Southern California Public Power
Authority, Revenue (Linden
Wind Energy Project)	5.00	7/1/29	2,230,000	2,601,518
Southern California Public Power
Authority, Revenue (Milford
Wind Corridor Phase I Project)	5.00	7/1/29	11,865,000	13,807,775
Southern California Public Power
Authority, Revenue (Windy
Point/Windy Flats Project)	5.00	7/1/27	13,765,000	16,158,183
Stockton Public Financing
Authority, Water Revenue
(Delta Water Supply Project)	6.25	10/1/38	1,000,000	1,179,460
Stockton Public Financing
Authority, Water Revenue
(Delta Water Supply Project)	6.25	10/1/40	1,500,000	1,766,730
Stockton Unified School District,
GO (Insured; Assured Guaranty
Municipal Corp.)	5.00	7/1/25	1,620,000	1,882,051
Stockton Unified School District,
GO (Insured; Assured Guaranty
Municipal Corp.)	5.00	7/1/26	1,115,000	1,284,179
Stockton Unified School District,
GO (Insured; Assured Guaranty
Municipal Corp.)	5.00	8/1/38	2,500,000	2,806,500
Tobacco Securitization Authority
of Southern California, Tobacco
Settlement Asset-Backed Bonds
(San Diego County Tobacco Asset
Securitization Corporation)	4.75	6/1/25	1,305,000	1,296,896

18

Long-Term Municipal	Coupon	Maturity	Principal
Investments (continued)	Rate (%)	Date	Amount ($)		Value ($)
California (continued)
Tobacco Securitization Authority
of Southern California,
Tobacco Settlement
Asset-Backed Bonds (San Diego
County Tobacco Asset
Securitization Corporation)	5.13	6/1/46	8,850,000		6,923,798
Torrance,
Revenue (Torrance Memorial
Medical Center)	5.00	9/1/40	3,000,000		3,219,750
Tuolumne Wind Project Authority,
Revenue (Tuolumne
Company Project)	5.63	1/1/29	8,000,000		9,306,480
Turlock Irrigation District,
Revenue	5.00	1/1/25	5,610,000		6,422,272
Turlock Irrigation District,
Revenue	5.00	1/1/26	8,120,000		9,295,695
University of California Regents,
General Revenue	5.25	5/15/28	10,000,000		11,163,900
University of California Regents,
General Revenue	5.25	5/15/30	3,000,000		3,639,300
University of California Regents,
General Revenue	5.75	5/15/31	8,000,000		9,512,560
University of California Regents,
Limited Project Revenue	5.00	5/15/42	10,000,000		11,197,200
University of California Regents,
Medical Center Pooled Revenue	5.00	5/15/43	10,000,000		11,148,600
Walnut Energy Center Authority,
Revenue	5.00	1/1/27	3,150,000		3,798,459
West Kern Community College
District, GO (Insured; XLCA)	0.00	11/1/20	1,000,000	c	817,440
U.S. Related—1.2%
Guam,
Hotel Occupancy
Tax Revenue	6.00	11/1/26	3,300,000		3,940,794

The Fund 19

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Long-Term Municipal	Coupon	Maturity	Principal
Investments (continued)	Rate (%)	Date	Amount ($)		Value ($)
U.S. Related (continued)
Guam,
LOR (Section 30)	5.63	12/1/29	2,850,000		3,141,840
Virgin Islands Public Finance
Authority, Revenue (Virgin Islands
Matching Fund Loan Notes)	5.00	10/1/25	5,000,000		5,460,300
Total Investments (cost $915,012,564)			99.4	%	1,023,030,266
Cash and Receivables (Net)			.6	%	6,129,402
Net Assets			100.0	%	1,029,159,668

a These securities are prerefunded; the date shown represents the prerefunded date. Bonds which are prerefunded are 

collateralized by U.S. Government securities which are held in escrow and are used to pay principal and interest on 

the municipal issue and to retire the bonds in full at the earliest refunding date. 

b Securities exempt from registration pursuant to Rule 144A under the Securities Act of 1933.These securities may be 

resold in transactions exempt from registration, normally to qualified institutional buyers.At November 30, 2014, 

these securities were valued at $30,239,760 or 2.9% of net assets. 

c Security issued with a zero coupon. Income is recognized through the accretion of discount. 

d Collateral for floating rate borrowings. 

Portfolio Summary (Unaudited)†
	Value (%)		Value (%)
Utility-Water and Sewer	15.1	Prerefunded	3.1
Transportation Services	14.9	Asset-Backed	1.9
State/Territory	14.4	Lease	1.9
Health Care	13.9	Housing	1.4
Utility-Electric	7.6	Industrial	.5
Education	7.2	County	.3
Special Tax	4.8	Other	8.2
City	4.2		99.4
† Based on net assets.

20

Summary of Abbreviations
ABAG	Association of Bay Area	ACA	American Capital Access
	Governments
AGC	ACE Guaranty Corporation	AGIC	Asset Guaranty Insurance Company
AMBAC	American Municipal Bond	ARRN	Adjustable Rate
	Assurance Corporation		Receipt Notes
BAN	Bond Anticipation Notes	BPA	Bond Purchase Agreement
CIFG	CDC Ixis Financial Guaranty	COP	Certificate of Participation
CP	Commercial Paper	DRIVERS	Derivative Inverse
			Tax-Exempt Receipts
EDR	Economic Development	EIR	Environmental Improvement
	Revenue		Revenue
FGIC	Financial Guaranty	FHA	Federal Housing
	Insurance Company		Administration
FHLB	Federal Home	FHLMC	Federal Home Loan Mortgage
	Loan Bank		Corporation
FNMA	Federal National	GAN	Grant Anticipation Notes
	Mortgage Association
GIC	Guaranteed Investment	GNMA	Government National Mortgage
	Contract		Association
GO	General Obligation	HR	Hospital Revenue
IDB	Industrial Development Board	IDC	Industrial Development Corporation
IDR	Industrial Development	LIFERS	Long Inverse Floating
	Revenue		Exempt Receipts
LOC	Letter of Credit	LOR	Limited Obligation Revenue
LR	Lease Revenue	MERLOTS	Municipal Exempt Receipts
			Liquidity Option Tender
MFHR	Multi-Family Housing Revenue	MFMR	Multi-Family Mortgage Revenue
PCR	Pollution Control Revenue	PILOT	Payment in Lieu of Taxes
P-FLOATS	Puttable Floating Option	PUTTERS	Puttable Tax-Exempt Receipts
	Tax-Exempt Receipts
RAC	Revenue Anticipation Certificates	RAN	Revenue Anticipation Notes
RAW	Revenue Anticipation Warrants	RIB	Residual Interest Bonds
ROCS	Reset Options Certificates	RRR	Resources Recovery Revenue
SAAN	State Aid Anticipation Notes	SBPA	Standby Bond Purchase Agreement
SFHR	Single Family Housing Revenue	SFMR	Single Family Mortgage Revenue
SONYMA	State of New York	SPEARS	Short Puttable Exempt
	Mortgage Agency		Adjustable Receipts
SWDR	Solid Waste Disposal Revenue	TAN	Tax Anticipation Notes
TAW	Tax Anticipation Warrants	TRAN	Tax and Revenue Anticipation Notes
XLCA	XL Capital Assurance
See notes to financial statements.

The Fund 21

STATEMENT OF ASSETS AND LIABILITIES 

November 30, 2014 (Unaudited) 

				Cost	Value
Assets ($):
Investments in securities—See Statement of Investments			915,012,564		1,023,030,266
Cash					4,887,027
Interest receivable					12,159,494
Receivable for shares of Common Stock subscribed					45,000
Prepaid expenses					40,760
					1,040,162,547
Liabilities ($):
Due to The Dreyfus Corporation and affiliates—Note 3(c)					633,342
Payable for floating rate notes issued—Note 4					9,750,000
Payable for shares of Common Stock redeemed					454,441
Interest and expense payable related
to floating rate notes issued—Note 4					33,617
Accrued expenses					131,479
					11,002,879
Net Assets ($)					1,029,159,668
Composition of Net Assets ($):
Paid-in capital					948,591,837
Accumulated undistributed investment income—net					279,880
Accumulated net realized gain (loss) on investments					(27,729,751	)
Accumulated net unrealized appreciation
(depreciation) on investments					108,017,702
Net Assets ($)					1,029,159,668
Net Asset Value Per Share
	Class A	Class C	Class I	Class Y	Class Z
Net Assets ($)	90,464,909	9,385,923	19,712,145	3,982,095	905,614,596
Shares Outstanding	5,895,088	611,783	1,285,049	259,598	59,010,598
Net Asset Value
Per Share ($)	15.35	15.34	15.34	15.34	15.35
See notes to financial statements.

22

STATEMENT OF OPERATIONS 

Six Months Ended November 30, 2014 (Unaudited) 

Investment Income ($):
Interest Income	22,293,946
Expenses:
Management fee—Note 3(a)	3,088,172
Shareholder servicing costs—Note 3(c)	464,318
Professional fees	50,334
Custodian fees—Note 3(c)	39,319
Interest and expense related to floating rate notes issued—Note 4	38,262
Directors’ fees and expenses—Note 3(d)	37,847
Registration fees	37,491
Distribution fees—Note 3(b)	34,545
Prospectus and shareholders’ reports	17,831
Loan commitment fees—Note 2	4,883
Miscellaneous	28,561
Total Expenses	3,841,563
Less—reduction in fees due to earnings credits—Note 3(c)	(175	)
Net Expenses	3,841,388
Investment Income—Net	18,452,558
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):
Net realized gain (loss) on investments	(2,231,314	)
Net unrealized appreciation (depreciation) on investments	11,897,578
Net Realized and Unrealized Gain (Loss) on Investments	9,666,264
Net Increase in Net Assets Resulting from Operations	28,118,822
See notes to financial statements.

The Fund 23

STATEMENT OF CHANGES IN NET ASSETS

	Six Months Ended
	November 30, 2014		Year Ended
	(Unaudited)		May 31, 2014a
Operations ($):
Investment income—net	18,452,558		40,781,054
Net realized gain (loss) on investments	(2,231,314	)	(9,625,247	)
Net unrealized appreciation
(depreciation) on investments	11,897,578		(8,837,456	)
Net Increase (Decrease) in Net Assets
Resulting from Operations	28,118,822		22,318,351
Dividends to Shareholders from ($):
Investment income—net:
Class A	(1,482,744	)	(3,494,299	)
Class C	(120,011	)	(289,786	)
Class I	(324,599	)	(1,002,015	)
Class Y	(56,304	)	(36	)
Class Z	(16,293,159	)	(35,680,490	)
Total Dividends	(18,276,817	)	(40,466,626	)
Capital Stock Transactions ($):
Net proceeds from shares sold:
Class A	5,314,895		6,449,175
Class C	459,326		1,162,870
Class I	7,080,240		7,044,161
Class Y	4,850,190		1,000
Class Z	10,639,567		16,870,108
Dividends reinvested:
Class A	966,230		2,277,089
Class C	74,776		180,420
Class I	182,746		403,050
Class Y	10,293		—
Class Z	12,077,282		26,306,218
Cost of shares redeemed:
Class A	(6,190,565	)	(32,772,028	)
Class C	(486,257	)	(4,194,853	)
Class I	(7,022,978	)	(29,970,236	)
Class Y	(973,634	)	—
Class Z	(45,965,985	)	(143,616,011	)
Increase (Decrease) in Net Assets
from Capital Stock Transactions	(18,983,874	)	(149,859,037	)
Total Increase (Decrease) in Net Assets	(9,141,869	)	(168,007,312	)
Net Assets ($):
Beginning of Period	1,038,301,537		1,206,308,849
End of Period	1,029,159,668		1,038,301,537
Undistributed investment income—net	279,880		104,139

24

	Six Months Ended
	November 30, 2014		Year Ended
	(Unaudited)		May 31, 2014a
Capital Share Transactions:
Class A
Shares sold	347,492		442,316
Shares issued for dividends reinvested	63,336		155,838
Shares redeemed	(406,370	)	(2,251,904	)
Net Increase (Decrease) in Shares Outstanding	4,458		(1,653,750	)
Class C
Shares sold	30,104		79,662
Shares issued for dividends reinvested	4,902		12,356
Shares redeemed	(32,070	)	(288,228	)
Net Increase (Decrease) in Shares Outstanding	2,936		(196,210	)
Class Ib
Shares sold	465,441		483,188
Shares issued for dividends reinvested	11,975		27,631
Shares redeemed	(466,146	)	(2,064,161	)
Net Increase (Decrease) in Shares Outstanding	11,270		(1,553,342	)
Class Yb
Shares sold	322,904		67.94
Shares issued for dividends reinvested	673		—
Shares redeemed	(64,047	)	—
Net Increase (Decrease) in Shares Outstanding	259,530		67.94
Class Z
Shares sold	698,178		1,155,104
Shares issued for dividends reinvested	791,466		1,799,679
Shares redeemed	(3,022,490	)	(9,846,116	)
Net Increase (Decrease) in Shares Outstanding	(1,532,846	)	(6,891,333	)

a Effective July 1, 2013, the fund commenced offering ClassY shares. 

b During the period ended November 30, 2014,304,327 Class I shares representing $4,564,899 were exchange for 

304,327 ClassY shares. 

See notes to financial statements.

The Fund 25

FINANCIAL HIGHLIGHTS

The following tables describe the performance for each share class for the fiscal periods indicated. All information (except portfolio turnover rate) reflects financial results for a single fund share.Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the fund’s financial statements.

Six Months Ended
November 30, 2014					Year Ended May 31,
Class A Shares	(Unaudited)		2014		2013		2012		2011		2010
Per Share Data ($):
Net asset value,
beginning of period	15.20		15.35		15.30		14.12		14.52		13.95
Investment Operations:
Investment income—neta	.26		.54		.51		.55		.57		.57
Net realized and unrealized
gain (loss) on investments	.15		(.16	)	.05		1.17		(.40	)	.57
Total from Investment Operations	.41		.38		.56		1.72		.17		1.14
Distributions:
Dividends from
investment income—net	(.26	)	(.53	)	(.51	)	(.54	)	(.57	)	(.57	)
Dividends from net realized
gain on investments	—		—		(.00	)b	—		—		—
Total Distributions	(.26	)	(.53	)	(.51	)	(.54	)	(.57	)	(.57	)
Net asset value, end of period	15.35		15.20		15.35		15.30		14.12		14.52
Total Return (%)c	2.63	d	2.71		3.67		12.41		1.20		8.30
Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets	.93	e	.93		.92		.93		.93		.92
Ratio of net expenses
to average net assets	.93	e	.93		.92		.93		.93		.92
Ratio of interest and expense
related to floating rate notes
issued to average net assets	.01	e	.01		—		—		—		—
Ratio of net investment income
to average net assets	3.39	e	3.68		3.28		3.70		4.00		3.99
Portfolio Turnover Rate	5.64	d	13.90		9.57		20.88		14.78		22.39
Net Assets, end of period
($ x 1,000)	90,465		89,525		115,773		116,939		105,584		123,053

a	Based on average shares outstanding.
b	Amount represents less than $.01 per share.
c	Exclusive of sales charge.
d	Not annualized.
e	Annualized.

See notes to financial statements.

26

Six Months Ended
November 30, 2014					Year Ended May 31,
Class C Shares	(Unaudited)		2014		2013		2012		2011		2010
Per Share Data ($):
Net asset value,
beginning of period	15.19		15.34		15.30		14.12		14.51		13.95
Investment Operations:
Investment income—neta	.20		.43		.39		.43		.46		.45
Net realized and unrealized
gain (loss) on investments	.15		(.16	)	.04		1.18		(.39	)	.56
Total from Investment Operations	.35		.27		.43		1.61		.07		1.01
Distributions:
Dividends from
investment income—net	(.20	)	(.42	)	(.39	)	(.43	)	(.46	)	(.45	)
Dividends from net realized
gain on investments	—		—		(.00	)b	—		—		—
Total Distributions	(.20	)	(.42	)	(.39	)	(.43	)	(.46	)	(.45	)
Net asset value, end of period	15.34		15.19		15.34		15.30		14.12		14.51
Total Return (%)c	2.31	d	1.92		2.81		11.58		.48		7.36
Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets	1.70	e	1.70		1.68		1.66		1.71		1.72
Ratio of net expenses
to average net assets	1.70	e	1.70		1.68		1.66		1.71		1.72
Ratio of interest and expense
related to floating rate notes
issued to average net assets	.01	e	.01		—		—		—		—
Ratio of net investment income
to average net assets	2.64	e	2.92		2.51		2.95		3.23		3.18
Portfolio Turnover Rate	5.64	d	13.90		9.57		20.88		14.78		22.39
Net Assets, end of period
($ x 1,000)	9,386		9,251		12,351		11,742		9,485		9,653

a	Based on average shares outstanding.
b	Amount represents less than $.01 per share.
c	Exclusive of sales charge.
d	Not annualized.
e	Annualized.

See notes to financial statements.

The Fund 27

FINANCIAL HIGHLIGHTS (continued)

Six Months Ended
November 30, 2014					Year Ended May 31,
Class I Shares	(Unaudited)		2014		2013		2012		2011		2010
Per Share Data ($):
Net asset value,
beginning of period	15.19		15.34		15.29		14.12		14.51		13.94
Investment Operations:
Investment income—neta	.27		.57		.54		.58		.61		.59
Net realized and unrealized
gain (loss) on investments	.16		(.15	)	.06		1.17		(.40	)	.58
Total from Investment Operations	.43		.42		.60		1.75		.21		1.17
Distributions:
Dividends from
investment income—net	(.28	)	(.57	)	(.55	)	(.58	)	(.60	)	(.60	)
Dividends from net realized
gain on investments	—		—		(.00	)b	—		—		—
Total Distributions	(.28	)	(.57	)	(.55	)	(.58	)	(.60	)	(.60	)
Net asset value, end of period	15.34		15.19		15.34		15.29		14.12		14.51
Total Return (%)	2.82	c	2.96		3.93		12.60		1.54		8.57
Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets	.68	d	.68		.66		.68		.66		.68
Ratio of net expenses
to average net assets	.68	d	.68		.66		.68		.66		.67
Ratio of interest and expense
related to floating rate notes
issued to average net assets	.01	d	.01		—		—		—		—
Ratio of net investment income
to average net assets	3.65	d	3.93		3.52		3.92		4.29		4.20
Portfolio Turnover Rate	5.64	c	13.90		9.57		20.88		14.78		22.39
Net Assets, end of period
($ x 1,000)	19,712		19,350		43,363		30,742		24,039		17,546

a	Based on average shares outstanding.
b	Amount represents less than $.01 per share.
c	Not annualized.
d	Annualized.

See notes to financial statements.

28

	Six Months Ended
	November 30, 2014		Period Ended
Class Y Shares	(Unaudited)		May 31, 2014a
Per Share Data ($):
Net asset value, beginning of period	15.19		14.72
Investment Operations:
Investment income—netb	.31		.53
Net realized and unrealized
gain (loss) on investments	.11		.46
Total from Investment Operations	.42		.99
Distributions:
Dividends from investment income—net	(.27	)	(.52	)
Net asset value, end of period	15.34		15.19
Total Return (%)c	2.81		6.95
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assetsd	.69		.63
Ratio of net expenses to average net assetsd	.69		.63
Ratio of interest and expense related to
floating rate notes issued to average net assets	.01	d	.01
Ratio of net investment income
to average net assetsd	3.63		3.97
Portfolio Turnover Rate	5.64	c	13.90
Net Assets, end of period ($ x 1,000)	3,982		1

a	From July 1, 2013 (commencement of initial offering) to May 31, 2014.
b	Based on average shares outstanding.
c	Not annualized.
d	Annualized.

See notes to financial statements.

The Fund 29

FINANCIAL HIGHLIGHTS (continued)

Six Months Ended
November 30, 2014								Year Ended May 31,
Class Z Shares	(Unaudited)			2014		2013			2012		2011		2010
Per Share Data ($):
Net asset value,
beginning of period		15.20		15.35		15.30			14.12		14.52		13.95
Investment Operations:
Investment income—neta		.28		.57		.54			.58		.60		.60
Net realized and unrealized
gain (loss) on investments		.14		(.16	)	.05			1.17		(.40	)	.57
Total from
Investment Operations		.42		.41		.59			1.75		.20		1.17
Distributions:
Dividends from
investment income—net		(.27	)	(.56	)	(.54	)		(.57	)	(.60	)	(.60	)
Dividends from net realized
gain on investments		—		—		(.00	)b		—		—		—
Total Distributions		(.27	)	(56	)	(.54	)		(.57	)	(.60	)	(.60	)
Net asset value,
end of period		15.35		15.20		15.35			15.30		14.12		14.52
Total Return (%)		2.74	c	2.92		3.89			12.63		1.43		8.52
Ratios/Supplemental
Data (%):
Ratio of total expenses
to average net assets		.72	d	.72		.70			.73		.71		.71
Ratio of net expenses
to average net assets		.72	d	.72		.70			.73		.71		.71
Ratio of interest and expense
related to floating rate notes
issued to average net assets		.01	d	.01		—			—		—		—
Ratio of net investment income
to average net assets		3.61	d	3.89		3.50			3.90		4.23		4.21
Portfolio Turnover Rate		5.64	c	13.90		9.57			20.88		14.78		22.39
Net Assets, end of period
($ x 1,000)	905,615			920,175		1,034,822		1,066,153			1,016,288		1,194,399

a	Based on average shares outstanding.
b	Amount represents less than $.01 per share.
c	Not annualized.
d	Annualized.

See notes to financial statements.

30

NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1—Significant Accounting Policies:

Dreyfus California AMT-Free Municipal Bond Fund (the “fund”) is the sole series of Dreyfus Premier California AMT-Free Municipal Bond Fund Inc. (the “Company”), which is registered under the Investment Company Act of 1940, as amended (the “Act”), as a non-diversified open-end management investment company. The fund’s investment objective is to seek as high a level of current income exempt from federal and California state income taxes, as is consistent with the preservation of capital. The Dreyfus Corporation (the “Manager” or “Dreyfus”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as the fund’s investment adviser.

MBSC Securities Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the fund’s shares. The fund is authorized to issue 600 million shares of $.001 par value Common Stock. The fund currently offers five classes of shares: Class A (100 million shares authorized), Class C (100 million shares authorized), Class I (100 million shares authorized), Class Y (100 million shares authorized) and Class Z (200 million shares authorized). Class A shares generally are subject to a sales charge imposed at the time of purchase. Class C shares are subject to a contingent deferred sales charge (“CDSC”) imposed on Class C shares redeemed within one year of purchase. Class I and Class Y shares are sold at net asset value per share generally to institutional investors. Class Z shares are sold at net asset value per share generally only to shareholders of the fund who received Class Z shares in exchange for their shares of a Dreyfus-managed fund as a result of the reorganization of such Dreyfus-managed fund, and who continue to maintain accounts with the fund at the time of purchase. Class Z shares generally are not available for new accounts. Other differences between the classes include the services offered to and the expenses borne by each class, the allocation of certain transfer agency costs, and certain voting rights. Income, expenses

The Fund 31

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

(other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.

The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.

The Company enters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown.The fund does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. This hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.

32

Various inputs are used in determining the value of the fund’s investments relating to fair value measurements.These inputs are summarized in the three broad levels listed below:

Level 1—unadjusted quoted prices in active markets for identical investments.

Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).

Level 3—significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the fund’s investments are as follows:

Investments in securities are valued each business day by an independent pricing service (the “Service”) approved by the Company’s Board of Directors (the “Board”). Investments for which quoted bid prices are readily available and are representative of the bid side of the market in the judgment of the Service are valued at the mean between the quoted bid prices (as obtained by the Service from dealers in such securities) and asked prices (as calculated by the Service based upon its evaluation of the market for such securities). Other investments (which constitute a majority of the portfolio securities) are carried at fair value as determined by the Service, based on methods which include consideration of the following: yields or prices of municipal securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions.All of the preceding securities are generally categorized within Level 2 of the fair value hierarchy.

The Fund 33

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The Service’s procedures are reviewed by Dreyfus under the general supervision of the Board.

When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board. Certain factors may be considered when fair valuing investments such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers.These securities are either categorized within Level 2 or 3 of the fair value hierarchy depending on the relevant inputs used.

For restricted securities where observable inputs are limited, assumptions about market activity and risk are used and are generally categorized within Level 3 of the fair value hierarchy.

The following is a summary of the inputs used as of November 30, 2014 in valuing the fund’s investments:

		Level 2—Other		Level 3—
	Level 1—	Significant		Significant
	Unadjusted	Observable		Unobservable
Quoted Prices		Inputs		Inputs	Total
Assets ($)
Investments in Securities:
Municipal Bonds†	—	1,023,030,266		—	1,023,030,266
Liabilities ($)
Floating Rate Notes††	—	(9,750,000	)	—	(9,750,000	)

†	See Statement of Investments for additional detailed categorizations.
††	Certain of the fund’s liabilities are held at carrying amount, which approximates fair value for
	financial reporting purposes.

At November 30, 2014, there were no transfers between Level 1 and Level 2 of the fair value hierarchy.

34

(b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Interest income, adjusted for accretion of discount and amortization of premium on investments, is earned from settlement date and recognized on the accrual basis. Securities purchased or sold on a when issued or delayed delivery basis may be settled a month or more after the trade date.

The fund follows an investment policy of investing primarily in municipal obligations of one state. Economic changes affecting the state and certain of its public bodies and municipalities may affect the ability of issuers within the state to pay interest on, or repay principal of, municipal obligations held by the fund.

(c) Dividends to shareholders: It is the policy of the fund to declare dividends daily from investment income-net. Such dividends are paid monthly. Dividends from net realized capital gains, if any, are normally declared and paid annually, but the fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”).To the extent that net realized capital gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

(d) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, which can distribute tax-exempt dividends, by complying with the applicable provisions of the Code, and to make distributions of income and net realized capital gain sufficient to relieve it from substantially all federal income and excise taxes.

As of and during the period ended November 30, 2014, the fund did not have any liabilities for any uncertain tax positions. The fund recognizes interest and penalties, if any, related to uncertain tax positions

The Fund 35

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

as income tax expense in the Statement of Operations. During the period ended November 30, 2014, the fund did not incur any interest or penalties.

Each tax year in the three-year period ended May 31, 2014 remains subject to examination by the Internal Revenue Service and state taxing authorities.

Under the Regulated Investment Company Modernization Act of 2010 (the “2010 Act”), the fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 (“post-enactment losses”) for an unlimited period. Furthermore, post-enactment capital loss carryovers retain their character as either short-term or long-term capital losses rather than short-term as they were under previous statute.The 2010 Act requires post-enactment losses to be utilized before the utilization of losses incurred in taxable years prior to the effective date of the 2010 Act (“pre-enactment losses”).As a result of this ordering rule, pre-enactment losses may be more likely to expire unused.

The fund has an unused capital loss carryover of $26,282,220 available for federal income tax purposes to be applied against future net realized capital gains, if any, realized subsequent to May 31, 2014. If not applied, $158,542 of the carryover expires in fiscal year 2016 and $15,819,359 expires in fiscal year 2018. The fund has $3,697,784 of post-enactment short-term capital losses and $6,606,535 of post-enactment long-term capital losses which can be carried forward for an unlimited period.

The tax character of distributions paid to shareholders during the fiscal year ended May 31, 2014 was as follows: tax-exempt income $40,412,982 and ordinary income $53,644.The tax character of current year distributions will be determined at the end of the current fiscal year.

36

NOTE 2—Bank Lines of Credit:

The fund participates with other Dreyfus-managed funds in a $430 million unsecured credit facility led by Citibank, N.A. and a $300 million unsecured credit facility provided by The Bank of New York Mellon, a subsidiary of BNY Mellon and an affiliate of Dreyfus (each, a “Facility”), each to be utilized primarily for temporary or emergency purposes, including the financing of redemptions. Prior to October 8, 2014, the unsecured credit facility with Citibank, N.A. was $265 million. In connection therewith, the fund has agreed to pay its pro rata portion of commitment fees for each Facility. Interest is charged to the fund based on rates determined pursuant to the terms of the respective Facility at the time of borrowing. During the period ended November 30, 2014, the fund did not borrow under the Facilities.

NOTE 3—Management Fee and Other Transactions with Affiliates:

(a) Pursuant to a management agreement (the “Agreement”) with the Manager, the management fee is computed at the annual rate of .60% of the value of the fund’s average daily net assets and is payable monthly. The Agreement provides that if in any fiscal year the aggregate expenses allocable to Class Z shares (excluding taxes, brokerage commissions, interest expense, commitment fees on borrowings and extraordinary expenses) exceed 1 ¹ / ₂% of the value of the average daily net assets of Class Z shares, the fund may deduct from the fees paid to the Manager, or the Manager will bear, such excess expense. During the period ended November 30, 2014, there was no reduction in expenses pursuant to the Agreement.

During the period ended November 30, 2014, the Distributor retained $1,440 from commissions earned on sales of the fund’s Class A shares.

The Fund 37

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

(b) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the Act, Class C shares pay the Distributor for distributing its shares at an annual rate of .75% of the value of its average daily net assets. During the period ended November 30, 2014, Class C shares were charged $34,545 pursuant to the Distribution Plan.

(c) Under the Shareholder Services Plan, Class A and Class C shares pay the Distributor at an annual rate of .25% of the value of their average daily net assets for the provision of certain services.The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the fund and providing reports and other information, and services related to the maintenance of shareholder accounts.The Distributor may make payments to Service Agents (securities dealers, financial institutions or other industry professionals) with respect to these services.The Distributor determines the amounts to be paid to Service Agents. During the period ended November 30, 2014, Class A and Class C shares were charged $110,300 and $11,515, respectively, pursuant to the Shareholder Services Plan.

Under the Shareholder Services Plan, Class Z shares reimburse the Distributor at an amount not to exceed an annual rate of .25% of the value of Class Z shares’ average daily net assets for certain allocated expenses of providing personal services and/or maintaining shareholder accounts. The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding Class Z shares and providing reports and other information, and services related to the maintenance of shareholder accounts. During the period ended November 30, 2014, Class Z shares were charged $184,204 pursuant to the Shareholder Services Plan.

The fund has arrangements with the transfer agent and the custodian whereby the fund may receive earnings credits when positive cash balances are maintained, which are used to offset transfer agency and custody fees. For financial reporting purposes, the fund includes net earnings credits as an expense offset in the Statement of Operations.

38

The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the Manager, under a transfer agency agreement for providing transfer agency and cash management services for the fund.The majority of transfer agency fees are comprised of amounts paid on a per account basis, while cash management fees are related to fund subscriptions and redemptions. During the period ended November 30, 2014, the fund was charged $100,452 for transfer agency services and $4,660 for cash management services. These fees are included in Shareholder servicing costs in the Statement of Operations. Cash management fees were partially offset by earnings credits of $175.

The fund compensates The Bank of NewYork Mellon under a custody agreement for providing custodial services for the fund. These fees are determined based on net assets, geographic region and transaction activity. During the period ended November 30, 2014, the fund was charged $39,319 pursuant to the custody agreement.

The fund compensates The Bank of New York Mellon for performing certain cash management services related to fund subscriptions and redemptions, including shareholder redemption draft processing, under a cash management agreement. During the period ended November 30, 2014, the fund was charged $3,493 pursuant to the agreement, which is included in Shareholder servicing costs in the Statement of Operations.

During the period ended November 30, 2014, the fund was charged $3,616 for services performed by the Chief Compliance Officer and his staff.

The components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: management fees $505,409, Distribution Plan fees $5,757, Shareholder Services Plan fees $50,013, custodian fees $32,806, Chief Compliance Officer fees $1,234 and transfer agency fees $38,123.

The Fund 39

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

(d) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended November 30, 2014, amounted to $57,286,911 and $80,261,518, respectively.

Inverse Floater Securities: The fund participates in secondary inverse floater structures in which fixed-rate, tax-exempt municipal bonds are transferred to a trust (the “Trust”).The Trust typically issues two variable rate securities that are collateralized by the cash flows of the fixed-rate, tax-exempt municipal bonds. One of these variable rate securities pays interest based on a short-term floating rate set by a remarketing agent at predetermined intervals (“Trust Certificates”). A residual interest tax-exempt security is also created by the Trust, which is transferred to the fund, and is paid interest based on the remaining cash flows of the Trust, after payment of interest on the other securities and various expenses of the Trust.An inverse floater security may be collapsed without the consent of the fund due to certain termination events such as bankruptcy, default or other credit event.

The fund accounts for the transfer of bonds to the Trust as secured borrowings, with the securities transferred remaining in the fund’s investments, and the related floating rate certificate securities reflected as fund liabilities in the Statement of Assets and Liabilities.

The fund may invest in inverse floater securities on either a non-recourse or recourse basis.These securities are typically supported by a liquidity facility provided by a bank or other financial institution (the “Liquidity Provider”) that allows the holders of the Trust Certificates to tender their certificates in exchange for payment from the Liquidity

40

Provider of par plus accrued interest on any business day prior to a termination event.When the fund invests in inverse floater securities on a non-recourse basis, the Liquidity Provider is required to make a payment under the liquidity facility due to a termination event to the holders of the Trust Certificates.When this occurs, the Liquidity Provider typically liquidates all or a portion of the municipal securities held in the Trust.A liquidation shortfall occurs if the Trust Certificates exceed the proceeds of the sale of the bonds in the Trust (“Liquidation Shortfall”). When a fund invests in inverse floater securities on a recourse basis, the fund typically enters into a reimbursement agreement with the Liquidity Provider where the fund is required to repay the Liquidity Provider the amount of any Liquidation Shortfall. As a result, a fund investing in a recourse inverse floater security bears the risk of loss with respect to any Liquidation Shortfall.

The average amount of borrowings outstanding under the inverse floater structure during the period ended November 30, 2014, was approximately $9,750,000, with a related weighted average annualized interest rate of .78%.

At November 30, 2014, accumulated net unrealized appreciation on investments was $108,017,702, consisting of $109,386,306 gross unrealized appreciation and $1,368,604 gross unrealized depreciation.

At November 30, 2014, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments).

The Fund 41

INFORMATION ABOUT THE RENEWAL OF THE 

FUND’S MANAGEMENT AGREEMENT (Unaudited) 

At a meeting of the fund’s Board of Directors held on November 3-4, 2014, the Board considered the renewal of the fund’s Management Agreement pursuant to which Dreyfus provides the fund with investment advisory and administrative services (the “Agreement”).The Board members, a majority of whom are not “interested persons” (as defined in the Investment Company Act of 1940, as amended) of the fund, were assisted in their review by independent legal counsel and met with counsel in executive session separate from Dreyfus representatives. In considering the renewal of the Agreement, the Board considered all factors that it believed to be relevant, including those discussed below. The Board did not identify any one factor as dispositive, and each Board member may have attributed different weights to the factors considered.

Analysis of Nature, Extent, and Quality of Services Provided to the Fund. The Board considered information provided to them at the meeting and in previous presentations from Dreyfus representatives regarding the nature, extent, and quality of the services provided to funds in the Dreyfus fund complex. Dreyfus provided the number of open accounts in the fund, the fund’s asset size and the allocation of fund assets among distribution channels. Dreyfus also had previously provided information regarding the diverse intermediary relationships and distribution channels of funds in the Dreyfus fund complex (such as retail direct or intermediary, in which intermediaries typically are paid by the fund and/or Dreyfus) and Dreyfus’ corresponding need for broad, deep, and diverse resources to be able to provide ongoing shareholder services to each intermediary or distribution channel, as applicable to the fund.

The Board also considered research support available to, and portfolio management capabilities of, the fund’s portfolio management personnel and that Dreyfus also provides oversight of day-to-day fund operations, including fund accounting and administration and assistance in meeting legal and regulatory requirements. The Board also considered Dreyfus’ extensive administrative, accounting, and compliance infrastructures.

42

Comparative Analysis of the Fund’s Performance and Management Fee and Expense Ratio. The Board reviewed reports prepared by Lipper, Inc. (“Lipper”), an independent provider of investment company data, which included information comparing (1) the fund’s performance with the performance of a group of comparable funds (the “Performance Group”) and with a broader group of funds (the “Performance Universe”), all for various periods ended September 30, 2014, and (2) the fund’s actual and contractual management fees and total expenses with those of a group of comparable funds (the “Expense Group”) and with a broader group of funds (the “Expense Universe”), the information for which was derived in part from fund financial statements available to Lipper as of the date of its analysis. Dreyfus previously had furnished the Board with a description of the methodology Lipper used to select the Performance Group and Performance Universe and the Expense Group and Expense Universe.

Dreyfus representatives stated that the usefulness of performance comparisons may be affected by a number of factors, including different investment limitations that may be applicable to the fund and comparison funds.The Board discussed the results of the comparisons and noted that the fund’s total return performance for both Class A and Z shares was below the Performance Group and Performance Universe medians for the various periods, except for the ten-year period when the performance of the fund’s Class Z shares was above the Performance Universe median (information on Class A shares is not available for the ten-year period).The Board also noted that the fund’s yield performance for Class A shares was below the Performance Group and Performance Universe medians for all periods and the fund’s yield performance for Class Z shares was below the Performance Group median for eight of the ten one-year periods ended September 30th and at or above the Performance Universe median for five of the ten one-periods ended September 30th. The Board noted the proximity to the Performance

The Fund 43

INFORMATION ABOUT THE RENEWAL OF THE FUND’S 

MANAGEMENT AGREEMENT (Unaudited) (continued) 

Universe median of the fund’s Class Z yield performance in certain periods in which the yield was below the median. Dreyfus also provided a comparison of the fund’s calendar year total returns to the returns of the fund’s Lipper category average and noted that the performance of the fund’s Class Z shares was above the Lipper category average for six of the ten calendar years.

The Board received a presentation from the fund’s portfolio managers, who described the fundamental and technical conditions at work in the municipal bond market, the level of volatility in the market, and the managers’ ongoing focus on mitigating downside risk in the fund’s portfolio. The portfolio managers also discussed the strategy implemented for the fund in 2009, quantitative risk management tools applied to overseeing the fund, the fund’s current structure to defend against volatility and to otherwise defensively position the fund’s credit posture.The portfolio managers also explained the fund’s performance relative to its duration and credit structure and the degree to which it impacts maximizing yield performance.

The Board also reviewed the range of actual and contractual management fees and total expenses of the Expense Group and Expense Universe funds and discussed the results of the comparisons.The Board noted that the fund’s contractual management fee was above the Expense Group median and the fund’s actual management fee and total expenses were above the Expense Group and Expense Universe medians.

Dreyfus representatives reviewed with the Board the management or investment advisory fees (1) paid by funds advised or administered by Dreyfus that are in the same Lipper category as the fund and (2) paid to Dreyfus or the Dreyfus-affiliated primary employer of the fund’s primary portfolio manager(s) for advising any separate accounts and/or other types of client portfolios that are considered to have similar investment strategies and policies as the fund (the “Similar Clients”), and explained the nature of the Similar Clients. They discussed differences in fees paid and the relationship of the fees paid in light of any differences in the services provided and other relevant factors. The

44

Board considered the relevance of the fee information provided for the Similar Clients to evaluate the appropriateness and reasonableness of the fund’s management fee.

Analysis of Profitability and Economies of Scale. Dreyfus representatives reviewed the expenses allocated and profit received by Dreyfus and its affiliates and the resulting profitability percentage for managing the fund and the aggregate profitability percentage to Dreyfus and its affiliates for managing the funds in the Dreyfus fund complex, and the method used to determine the expenses and profit. The Board concluded that the profitability results were not unreasonable, given the services rendered and service levels provided by Dreyfus. The Board also had been provided with information prepared by an independent consulting firm regarding Dreyfus’ approach to allocating costs to, and determining the profitability of, individual funds and the entire Dreyfus fund complex. The consulting firm also had analyzed where any economies of scale might emerge in connection with the management of a fund.

The Board considered on the advice of its counsel the profitability analysis (1) as part of its evaluation of whether the fees under the Agreement bear a reasonable relationship to the mix of services provided by Dreyfus, including the nature, extent and quality of such services, and (2) in light of the relevant circumstances for the fund and the extent to which economies of scale would be realized if the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders. Dreyfus representatives noted that a discussion of economies of scale is predicated on a fund having achieved a substantial size with increasing assets and that, if a fund’s assets had been stable or decreasing, the possibility that Dreyfus may have realized any economies of scale would be less. Dreyfus representatives also noted that, as a result of shared and allocated costs among funds in the Dreyfus fund complex, the extent of economies of scale could depend substantially on the level of assets in the complex as a whole, so that increases and decreases in complex-wide assets can affect potential

The Fund 45

INFORMATION ABOUT THE RENEWAL OF THE FUND’S 

MANAGEMENT AGREEMENT (Unaudited) (continued) 

economies of scale in a manner that is disproportionate to, or even in the opposite direction from, changes in the fund’s asset level. The Board also considered potential benefits to Dreyfus from acting as investment adviser and noted that there were no soft dollar arrangements in effect for trading the fund’s investments.

At the conclusion of these discussions, the Board agreed that it had been furnished with sufficient information to make an informed business decision with respect to the renewal of the Agreement. Based on the discussions and considerations as described above, the Board concluded and determined as follows.

• The Board concluded that the nature, extent and quality of the services provided by Dreyfus are adequate and appropriate.

• The Board was concerned about the fund’s relative performance, but expressed confidence in the portfolio management team and agreed to closely monitor performance.

• The Board concluded that the fee paid to Dreyfus was reasonable in light of the considerations described above.

• The Board determined that the economies of scale which may accrue to Dreyfus and its affiliates in connection with the management of the fund had been adequately considered by Dreyfus in connection with the fee rate charged to the fund pursuant to the Agreement and that, to the extent in the future it were determined that material economies of scale had not been shared with the fund, the Board would seek to have those economies of scale shared with the fund.

In evaluating the Agreement, the Board considered these conclusions and determinations and also relied on its previous knowledge, gained through meetings and other interactions with Dreyfus and its affiliates, of the fund and the services provided to the fund by Dreyfus.The Board also relied on information received on a routine and regular basis

46

throughout the year relating to the operations of the fund and the investment management and other services provided under the Agreement, including information on the investment performance of the fund in comparison to similar mutual funds and benchmark performance indices; general market outlook as applicable to the fund; and compliance reports. In addition, the Board’s consideration of the contractual fee arrangements for this fund had the benefit of a number of years of reviews of prior or similar agreements during which lengthy discussions took place between the Board and Dreyfus representatives. Certain aspects of the arrangements may receive greater scrutiny in some years than in others, and the Board’s conclusions may be based, in part, on their consideration of the same or similar arrangements in prior years.The Board determined to renew the Agreement.

The Fund 47

NOTES

For More Information

Telephone Call your financial representative or 1-800-DREYFUS

Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Information regarding how the fund voted proxies relating to portfolio securities for the most recent 12-month period ended June 30 is available on the SEC’s website at http://www.sec.gov and without charge, upon request, by calling 1-800-DREYFUS.

Item 2.       Code of Ethics.

                  Not applicable.

Item 3.       Audit Committee Financial Expert.

                  Not applicable.

Item 4.       Principal Accountant Fees and Services.

                  Not applicable.

Item 5.       Audit Committee of Listed Registrants.

                  Not applicable.

Item 6.       Investments.

(a)Not applicable.

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

                  Not applicable.

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

Not applicable.

Item 9.       Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers.

Not applicable.  [CLOSED END FUNDS ONLY]

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

                  There have been no material changes to the procedures applicable to Item 10.

Item 11.     Controls and Procedures.

(a)        The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b)        There were no changes to the Registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 12.     Exhibits.

(a)(1)   Not applicable.

(a)(2)   Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.

(a)(3)   Not applicable.

(b)        Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940.

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.

Dreyfus Premier California AMT-Free Municipal Bond Fund, Inc.

By:       /s/ Bradley J. Skapyak

            Bradley J. Skapyak

            President

Date:    January 22, 2015

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/ Bradley J. Skapyak

            Bradley J. Skapyak

           President

Date:    January 22, 2015

By:       /s/ James Windels

            James Windels

            Treasurer

Date:    January 22, 2015

EXHIBIT INDEX

(a)(2)   Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.  (EX-99.CERT)

(b)        Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940.  (EX-99.906CERT)