<PAGE> PAGE 1
000 B000000 03/31/97
000 C000000 0000225375
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 U
001 A000000 FRANKLIN CALIFORNIA TAX-FREE INCOME FUND,INC.
001 B000000 811-2790
001 C000000 4153122000
002 A000000 777 MARINERS ISLAND BOULEVARD
002 B000000 SAN MATEO
002 C000000 CA
002 D010000 94404
002 D020000 1585
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
007 C011100 11
007 C011200 12
007 C011300 13
007 C011400 14
007 C011500 15
007 C011600 16
007 C011700 17
007 C011800 18
007 C011900 19
007 C012000 20
008 A000001 FRANKLIN ADVISERS, INC.
008 B000001 A
008 C000001 801-26292
008 D010001 SAN MATEO
008 D020001 CA
008 D030001 94403
008 D040001 7777
010 A000001 FRANKLIN TEMPLETON SERVICES, INC.
<PAGE> PAGE 2
010 C010001 SAN MATEO
010 C020001 CA
010 C030001 94403
010 C040001 7777
011 A000001 FRANKLIN/TEMPLETON DISTRIBUTORS, INC.
011 B000001 8-5889
011 C010001 SAN MATEO
011 C020001 CA
011 C030001 94403
011 C040001 7777
012 A000001 FRANKLIN/TEMPLETON INVESTOR SERVICES, INC.
012 B000001 84-1036
012 C010001 SAN MATEO
012 C020001 CA
012 C030001 94403
012 C040001 7777
013 A000001 COOPERS & LYBRAND L.L.P.
013 B010001 SAN FRANCISCO
013 B020001 CA
013 B030001 94105
013 B040001 2119
014 A000001 FRANKLIN/TEMPLETON DISTRIBUTORS, INC.
014 B000001 8-5889
015 A000001 THE BANK OF NEW YORK
015 B000001 C
015 C010001 NEW YORK
015 C020001 NY
015 C030001 10286
015 E010001 X
015 A000002 BANK OF AMERICA NT&SA
015 B000002 C
015 C010002 SAN FRANCISCO
015 C020002 CA
015 C030002 94104
015 C040002 1502
015 E010002 X
015 A000003 CITIBANK DELAWARE
015 B000003 C
015 C010003 NEW CASTLE
015 C020003 DE
015 C030003 19720
015 C040003 2409
015 E010003 X
018 000000 Y
019 A000000 Y
019 B000000 206
019 C000000 FRNKTEMGRP
020 C000001 0
020 C000002 0
020 C000003 0
020 C000004 0
<PAGE> PAGE 3
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 0
022 A000001 PAINEWEBBER INC
022 B000001 13-2638166
022 C000001 726308
022 D000001 619429
022 A000002 SMITH BARNEY SHEARSON
022 B000002 13-1912900
022 C000002 387031
022 D000002 390064
022 A000003 BANKERS TRUST CO
022 B000003 13-4941247
022 C000003 324904
022 D000003 334194
022 A000004 MERRILL LYNCH PIERCE FENNER
022 B000004 13-5674085
022 C000004 189525
022 D000004 137528
022 A000005 LEHMAN BROTHERS, INC
022 B000005 13-2518466
022 C000005 272837
022 D000005 46927
022 A000006 SIMON (WM E.) & SONS MUNI SEC
022 B000006 22-3017217
022 C000006 124712
022 D000006 91329
022 A000007 MORGAN STANLEY & CO INC
022 B000007 13-2655998
022 C000007 165068
022 D000007 36987
022 A000008 GOLDMAN SACHS & CO
022 B000008 13-5108880
022 C000008 146709
022 D000008 54381
022 A000009 PIPER JAFFRAY & HOPWOOD INC
022 B000009 41-0953246
022 C000009 142944
022 D000009 53656
022 A000010 BEAR, STEARNS & CO INC
022 B000010 13-3299429
022 C000010 104431
022 D000010 46055
023 C000000 3439376
023 D000000 2457802
024 000000 N
025 D000001 0
<PAGE> PAGE 4
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 Y
026 B000000 Y
026 C000000 Y
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 Y
026 H000000 N
027 000000 Y
028 A010000 142810
028 A020000 27011
028 A030000 0
028 A040000 140671
028 B010000 129041
028 B020000 27258
028 B030000 0
028 B040000 110140
028 C010000 126532
028 C020000 27348
028 C030000 0
028 C040000 145490
028 D010000 170762
028 D020000 27397
028 D030000 0
028 D040000 119868
028 E010000 161107
028 E020000 27778
028 E030000 0
028 E040000 137498
028 F010000 157101
028 F020000 27873
028 F030000 0
028 F040000 138757
028 G010000 887353
028 G020000 164665
028 G030000 0
028 G040000 792424
028 H000000 887353
029 000000 Y
030 A000000 32749
030 B000000 4.25
030 C000000 0.00
031 A000000 1206
<PAGE> PAGE 5
031 B000000 0
032 000000 31543
033 000000 0
034 000000 Y
035 000000 95
036 A000000 N
036 B000000 0
037 000000 N
038 000000 0
039 000000 Y
040 000000 Y
041 000000 Y
042 A000000 0
042 B000000 0
042 C000000 100
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 9455
044 000000 2167
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.000
048 A010000 100000
048 A020000 0.625
048 B010000 150000
048 B020000 0.500
048 C010000 9750000
048 C020000 0.450
048 D010000 2500000
048 D020000 0.440
048 E010000 2500000
048 E020000 0.420
048 F010000 2500000
048 F020000 0.400
048 G010000 2500000
048 G020000 0.380
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 20000000
048 K020000 0.360
049 000000 N
050 000000 N
051 000000 N
<PAGE> PAGE 6
052 000000 N
053 A000000 N
054 A000000 Y
054 B000000 Y
054 C000000 Y
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 Y
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 Y
054 M000000 Y
054 N000000 N
054 O000000 N
055 A000000 N
055 B000000 N
056 000000 N
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 100
062 A000000 Y
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.6
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 98.8
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 5.7
064 A000000 Y
064 B000000 Y
065 000000 N
066 A000000 N
067 000000 N
<PAGE> PAGE 7
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 N
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 N
070 J020000 N
070 K010000 Y
070 K020000 N
070 L010000 N
070 L020000 N
070 M010000 N
070 M020000 N
070 N010000 Y
070 N020000 N
070 O010000 N
070 O020000 N
070 P010000 Y
070 P020000 Y
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 2095604
071 B000000 1593373
071 C000000 13322341
071 D000000 12
072 A000000 12
072 B000000 900982
072 C000000 0
072 D000000 0
072 E000000 0
072 F000000 60995
072 G000000 0
072 H000000 0
<PAGE> PAGE 8
072 I000000 2566
072 J000000 129
072 K000000 1282
072 L000000 527
072 M000000 97
072 N000000 70
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 144
072 S000000 148
072 T000000 9679
072 U000000 0
072 V000000 0
072 W000000 421
072 X000000 76058
072 Y000000 0
072 Z000000 824924
072AA000000 45791
072BB000000 57551
072CC010000 0
072CC020000 67072
072DD010000 821421
072DD020000 4813
072EE000000 90067
073 A010000 0.4350
073 A020000 0.3937
073 B000000 0.0480
073 C000000 0.0000
074 A000000 6639
074 B000000 0
074 C000000 80361
074 D000000 13609879
074 E000000 0
074 F000000 0
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 49552
074 K000000 0
074 L000000 224849
074 M000000 0
074 N000000 13971280
074 O000000 186017
074 P000000 7040
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 6171
074 S000000 0
<PAGE> PAGE 9
074 T000000 13772052
074 U010000 1922183
074 U020000 19542
074 V010000 7.09
074 V020000 7.09
074 W000000 0.0000
074 X000000 195908
074 Y000000 453748
075 A000000 0
075 B000000 13608859
076 000000 0.00
077 A000000 Y
077 B000000 Y
078 000000 N
080 A000000 ICI MUTUAL INSURANCE COMPANY
080 B000000 NONE
080 C000000 130000
081 A000000 Y
081 B000000 205
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE DIOMEDES LOO-TAM
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND MARCH 31, 1997 ANNUAL REPORT
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 011
<NAME> FRANKLIN CALIFORNIA TAX-FREE INCOME FUND-CLASS I
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 13,196,976,619
<INVESTMENTS-AT-VALUE> 13,690,239,979
<RECEIVABLES> 274,401,716
<ASSETS-OTHER> 6,638,548
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 13,971,280,243
<PAYABLE-FOR-SECURITIES> 186,016,939
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 13,211,805
<TOTAL-LIABILITIES> 199,228,744
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 13,271,494,924
<SHARES-COMMON-STOCK> 1,922,182,969
<SHARES-COMMON-PRIOR> 1,853,430,596
<ACCUMULATED-NII-CURRENT> 19,264,116
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (11,970,901)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 493,263,360
<NET-ASSETS> 13,772,051,499
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 900,981,584
<OTHER-INCOME> 0
<EXPENSES-NET> (76,058,076)
<NET-INVESTMENT-INCOME> 824,923,508
<REALIZED-GAINS-CURRENT> (11,759,936)
<APPREC-INCREASE-CURRENT> (67,071,715)
<NET-CHANGE-FROM-OPS> 746,091,857
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (821,420,713)
<DISTRIBUTIONS-OF-GAINS> (89,640,774)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 235,692,887
<NUMBER-OF-SHARES-REDEEMED> (218,672,841)
<SHARES-REINVESTED> 51,732,327
<NET-CHANGE-IN-ASSETS> 411,700,407
<ACCUMULATED-NII-PRIOR> 20,574,321
<ACCUMULATED-GAINS-PRIOR> 89,119,986
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 60,994,984
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 76,058,076
<AVERAGE-NET-ASSETS> 13,608,858,813
<PER-SHARE-NAV-BEGIN> 7.180
<PER-SHARE-NII> 0.430
<PER-SHARE-GAIN-APPREC> (0.037)
<PER-SHARE-DIVIDEND> (0.435)
<PER-SHARE-DISTRIBUTIONS> (0.048)
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 7.090
<EXPENSE-RATIO> 0.560
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN CALIFORNIA TAX-FREE INCOME FUND MARCH 31, 1997 ANNUAL REPORT
AND IS QUALIFIED IN ITS ENTIRETY BY REFERNCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 012
<NAME> FRANKLIN CALIFORNIA TAX-FREE INCOME FUND-CLASS II
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 13,196,976,619
<INVESTMENTS-AT-VALUE> 13,690,239,979
<RECEIVABLES> 274,401,716
<ASSETS-OTHER> 6,638,548
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 13,971,280,243
<PAYABLE-FOR-SECURITIES> 186,016,939
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 13,211,805
<TOTAL-LIABILITIES> 199,228,744
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 13,271,494,924
<SHARES-COMMON-STOCK> 19,541,671
<SHARES-COMMON-PRIOR> 6,642,950
<ACCUMULATED-NII-CURRENT> 19,264,116
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (11,970,901)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 493,263,360
<NET-ASSETS> 13,772,051,499
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 900,981,584
<OTHER-INCOME> 0
<EXPENSES-NET> (76,058,076)
<NET-INVESTMENT-INCOME> 824,923,508
<REALIZED-GAINS-CURRENT> (11,759,936)
<APPREC-INCREASE-CURRENT> (67,071,715)
<NET-CHANGE-FROM-OPS> 746,091,857
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (4,813,000)
<DISTRIBUTIONS-OF-GAINS> (426,581)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 14,504,915
<NUMBER-OF-SHARES-REDEEMED> (2,099,714)
<SHARES-REINVESTED> 493,520
<NET-CHANGE-IN-ASSETS> 411,700,407
<ACCUMULATED-NII-PRIOR> 20,574,321
<ACCUMULATED-GAINS-PRIOR> 89,119,986
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 60,994,984
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 76,058,076
<AVERAGE-NET-ASSETS> 13,608,858,813
<PER-SHARE-NAV-BEGIN> 7.180
<PER-SHARE-NII> 0.390
<PER-SHARE-GAIN-APPREC> (0.038)
<PER-SHARE-DIVIDEND> (0.394)
<PER-SHARE-DISTRIBUTIONS> (0.048)
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 7.090
<EXPENSE-RATIO> 1.140
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.000
</TABLE>
REPORT OF INDEPENDENT AUDITORS
To the Board of Directors
of the Franklin California Tax-Free Income Fund, Inc.:
In planning and performing our audit of the financial
statements and financial highlights of the Franklin
California Tax-Free Income Fund, Inc. for the year ended
March 31, 1997, we considered its internal control
structure, including procedures for safeguarding securities,
in order to determine our auditing procedures for the
purpose of expressing our opinion on the financial
statements and financial highlights and to comply with the
requirements of Form N-SAR, not to provide assurance on the
internal control structure.
The management of the Franklin California Tax-Free Income
Fund, Inc. is responsible for establishing and maintaining
an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs
of internal control structure policies and procedures. Two
of the objectives of an internal control structure are to
provide management with reasonable, but not absolute,
assurance that assets are safeguarded against loss from
unauthorized use or disposition and that transactions are
executed in accordance with management's authorization and
recorded properly to permit preparation of financial
statements in conformity with generally accepted accounting
principles.
Because of inherent limitations in any internal control
structure, errors or irregularities may occur and not be
detected. Also, projection of any evaluation of the
structure to future periods is subject to the risk that it
may become inadequate because of changes in conditions or
that the effectiveness of the design and operation may
deteriorate.
Our consideration of the internal control structure would
not necessarily disclose all matters in the internal control
structure that might be material weaknesses under standards
established by the American Institute of Certified Public
Accountants. A material weakness is a condition in which the
design or operation of the specific internal control
structure elements does not reduce to a relatively low level
the risk that errors or irregularities in amounts that would
be material in relation to the financial statements and
financial highlights being audited may occur and not be
detected within a timely period by employees in the normal
course of performing their assigned functions. However, we
noted no matters involving the internal control structure,
including procedures for safeguarding securities, that we
consider to be material weaknesses, as defined above, as of
March 31, 1997.
This report is intended solely for the information and use
of management of the Franklin California Tax-Free Income
Fund, Inc. and the Securities and Exchange Commission.
S\COOPERS & LYBRAND L.L.P.
Coopers & Lybrand L.L.P.
San Francisco, California
May 2, 1997
