Franklin California Tax-Free Income Fund

Statement of Investments, December 31, 2019 (unaudited)

		Principal Amount	Value
	Municipal Bonds 95.8%
	California 94.9%
	ABAG Finance Authority for Nonprofit Corporations COP, Santa Clara County and Butte Valley-Tulelake Rural Health Projects Inc., California Mortgage Insured, 6.65%, 10/01/22	$210,000	$210,930
	ABAG Finance Authority for Nonprofit Corporations MFHR, Palo Alto Gardens Apartments, Series A, 5.45%, 4/01/39	5,500,000	5,507,260
	ABAG Finance Authority for Nonprofit Corporations Revenue,
	Casa de las Campanas Inc., California Mortgage Insured, 6.00%, 9/01/37	11,000,000	11,351,670
	Channing House, California Mortgage Insured, Pre-Refunded, 6.00%, 5/15/30	8,495,000	8,652,497
	Channing House, California Mortgage Insured, Pre-Refunded, 6.125%, 5/15/40	17,635,000	17,969,889
	Eskaton Properties Inc. Obligated Group, Refunding, 5.00%, 11/15/35	10,000,000	10,969,300
	Alameda Corridor Transportation Authority Revenue,
	Capital Appreciation, sub. lien, Refunding, Series A, AMBAC Insured, zero cpn., 10/01/29	20,000,000	15,587,600
	Capital Appreciation, sub. lien, Refunding, Series A, AMBAC Insured, zero cpn., 10/01/30	41,665,000	31,339,996
	Alameda USD Alameda County GO, Election of 2014, Series A, 5.00%, 8/01/39	18,000,000	21,311,100
	Alhambra City Elementary School District GO, Los Angeles County, Capital Appreciation, Election of 1999, Series B, NATL Insured, zero cpn., 9/01/27	3,035,000	2,634,046
	Alisal USD,
	GO, Monterey County, Capital Appreciation, Election of 2006, Series B, Assured Guaranty, zero cpn., 8/01/32	3,355,000	2,490,786
	GO, Monterey County, Capital Appreciation, Election of 2006, Series B, Assured Guaranty, zero cpn., 8/01/33	3,610,000	2,587,143
	GO, Monterey County, Capital Appreciation, Election of 2006, Series B, Assured Guaranty, zero cpn., 2/01/34	3,345,000	2,353,074
	Alvord USD,
	GO, Riverside County, Capital Appreciation, Election of 2007, Series B, AGMC Insured, zero cpn., 8/01/36	15,000,000	9,173,550
	GO, Riverside County, Capital Appreciation, Election of 2007, Series B, AGMC Insured, zero cpn. to 8/01/26, 7.35% thereafter, 8/01/46	42,500,000	49,144,450
	GO, Riverside County, Election of 2012, Refunding, Series A, AGMC Insured, 5.00%, 8/01/42	34,690,000	38,780,992
	Anaheim City School District GO, Orange County, Election of 2010, AGMC Insured, Pre-Refunded, 6.25%, 8/01/40	7,500,000	8,128,350
	Anaheim PFA Lease Revenue,
	Capital Appreciation, Public Improvements Project, Subordinate, Series C, AGMC Insured, zero cpn., 9/01/24	26,855,000	24,948,832
	Capital Appreciation, Public Improvements Project, Subordinate, Series C, AGMC Insured, zero cpn., 9/01/26	29,430,000	26,014,943
	Capital Appreciation, Public Improvements Project, Subordinate, Series C, AGMC Insured, zero cpn., 9/01/27	22,860,000	19,660,057
	Capital Appreciation, Public Improvements Project, Subordinate, Series C, AGMC Insured, zero cpn., 9/01/28	14,425,000	12,050,933
	Capital Appreciation, Public Improvements Project, Subordinate, Series C, AGMC Insured, zero cpn., 9/01/29	24,810,000	20,066,824
	Capital Appreciation, Public Improvements Project, Subordinate, Series C, AGMC Insured, zero cpn., 9/01/32	13,665,000	10,006,880
	Capital Appreciation, Public Improvements Project, Subordinate, Series C, AGMC Insured, zero cpn., 9/01/33	37,070,000	26,289,673
	Capital Appreciation, Public Improvements Project, Subordinate, Series C, AGMC Insured, zero cpn., 9/01/34	24,970,000	17,160,882
	Capital Appreciation, Public Improvements Project, Subordinate, Series C, AGMC Insured, zero cpn., 3/01/37	15,080,000	9,415,500

Quarterly Statement of Investments  |  See Notes to Statement of Investments.  |  1

Franklin California Tax-Free Income Fund
Statement of Investments (unaudited)

		Principal Amount	Value
	Municipal Bonds (continued)
	California (continued)
	Anaheim UHSD, GO, Orange County, Election of 2002, Capital Appreciation, Series A, AGMC Insured, zero cpn., 8/01/26	$8,570,000	$7,639,812
	Antelope Valley Community College District GO, Los Angeles and Kern Counties, Refunding, 5.00%, 8/01/39	11,750,000	13,594,397
	Atascadero USD, GO, San Luis Obispo County, Election of 2010, Series A, AGMC Insured, 5.00%, 8/01/40	6,235,000	6,592,951
	Baldwin Park USD,
	GO, Los Angeles County, Capital Appreciation, Election of 2006, BAM Insured, zero cpn., Pre-Refunded, 8/01/48	25,000,000	4,156,250
	GO, Los Angeles County, Capital Appreciation, Election of 2006, BAM Insured, zero cpn., Pre-Refunded, 8/01/53	60,000,000	6,787,200
	GO, Los Angeles County, Election of 2006, BAM Insured, Pre-Refunded, 5.00%, 8/01/43	5,000,000	5,723,950
	Bay Area Toll Authority Toll Bridge Revenue,
	San Francisco Bay Area, Series F-1, 5.00%, 4/01/56	60,000,000	71,260,200
	San Francisco Bay Area, Series S-4, AGMC Insured, Pre-Refunded, 5.125%, 4/01/48	20,000,000	22,709,400
	San Francisco Bay Area, Subordinate, Refunding, Series S-7, 4.00%, 4/01/42	84,260,000	94,084,716
	San Francisco Bay Area, Subordinate, Refunding, Series S-7, 4.00%, 4/01/47	72,000,000	79,807,680
	San Francisco Bay Area, Subordinate, Refunding, Series S-8, 5.00%, 4/01/56	25,000,000	31,047,750
	San Francisco Bay Area, Subordinate, Series S-2, Pre-Refunded, 5.00%, 10/01/50	75,000,000	77,315,250
	San Francisco Bay Area, Subordinate, Series S-4, Pre-Refunded, 5.00%, 4/01/43	36,040,000	40,778,539
	San Francisco Bay Area, Subordinate, Series S-4, Pre-Refunded, 5.125%, 4/01/48	27,355,000	31,060,782
	San Francisco Bay Area, Subordinate, Series S-4, Pre-Refunded, 5.25%, 4/01/53	33,000,000	37,602,180
	Beaumont Public Improvement Authority Wastewater Revenue, Series A, AGMC Insured, 5.00%, 9/01/49	10,000,000	11,790,000
	Beaumont USD,
	GO, Riverside County, Capital Appreciation, Election of 2008, Series C, AGMC Insured, zero cpn., 8/01/40	11,000,000	5,838,690
	GO, Riverside County, Election of 2008, Series C, AGMC Insured, Pre-Refunded, 5.75%, 8/01/36	6,200,000	6,677,090
	Berkeley USD, GO, Alameda County, Election of 2010, Series B, AGMC Insured, 5.375%, 8/01/35	5,090,000	5,223,053
	California Community College Financing Authority Lease Revenue,
	College of the Sequoias and Kern Community College District, Series A, AGMC Insured, 5.00%, 6/01/30	2,330,000	2,363,738
	College of the Sequoias and Kern Community College District, Series A, AGMC Insured, 5.125%, 6/01/35	1,250,000	1,268,275
	Grossmont-Cuyamaca Palomar and Shasta-Tehama-Trinity Joint Community College District, Series A, NATL Insured, 5.125%, 4/01/31	880,000	888,360
	California County Tobacco Securitization Agency Tobacco Settlement Revenue,
	Asset-Backed, Alameda County Tobacco Asset Securitization Corp., 5.875%, 6/01/35	7,500,000	7,576,425
	Asset-Backed, Kern County Tobacco Funding Corp., Refunding, 5.00%, 6/01/34	10,295,000	10,875,432
	Asset-Backed, Kern County Tobacco Funding Corp., Refunding, 5.00%, 6/01/40	17,650,000	18,737,769
	Asset-Backed, Stanislaus County Tobacco Funding Corp., Series A, 5.875%, 6/01/43	8,525,000	8,645,373
	California Health Facilities Financing Authority Revenue,
	California-Nevada Methodist Homes, Refunding, California Mortgage Insured, 5.00%, 7/01/35	1,000,000	1,173,190
	Catholic Healthcare West, Series A, 5.25%, 3/01/41	50,000,000	52,060,500
	Children’s Hospital Los Angeles, Refunding, Series A, 5.00%, 8/15/42	7,750,000	9,135,080
	Children’s Hospital Los Angeles, Refunding, Series A, 5.00%, 8/15/47	10,370,000	12,107,493
	Children’s Hospital Los Angeles, Series A, AGMC Insured, Pre-Refunded, 5.25%, 7/01/38	17,000,000	17,358,870
	Children’s Hospital of Orange County, Series A, 5.25%, 11/01/41	10,000,000	10,701,300
	Community Program for Persons with Developmental Disabilities, Series A, California Mortgage Insured, 6.25%, 2/01/26	5,000,000	5,281,750

  |  2

Franklin California Tax-Free Income Fund
Statement of Investments (unaudited)

		Principal Amount	Value
	Municipal Bonds (continued)
	California (continued)
	California Health Facilities Financing Authority Revenue, (continued)
	El Camino Hospital, 4.125%, 2/01/47	$11,000,000	$11,913,990
	El Camino Hospital, 5.00%, 2/01/47	12,500,000	14,638,000
	Feedback Foundation Inc. Olive Crest Treatment Centers and South California Alcohol and Drug Programs Inc., Series A, California Mortgage Insured, 6.50%, 12/01/22	390,000	391,689
	Kaiser Permanente, Refunding, Series A, Subseries A-2, 4.00%, 11/01/38	25,000,000	28,182,500
	Kaiser Permanente, Refunding, Series A, Subseries A-2, 4.00%, 11/01/44	385,000,000	425,490,450
	Kaiser Permanente, Series A, Subseries A-2, 5.00%, 11/01/47	30,000,000	44,699,400
	Lucile Salter Packard Children’s Hospital at Stanford, Series A, 5.00%, 8/15/51	39,455,000	42,392,425
	Lucile Salter Packard Children’s Hospital at Stanford, Series A, 5.00%, 11/15/56	22,000,000	26,320,140
	Lucile Salter Packard Children’s Hospital at Stanford, Series B, 5.00%, 8/15/55	12,960,000	15,184,325
	Northern California Presbyterian Homes and Services Inc., Refunding, California Mortgage Insured, 5.00%, 7/01/34	1,000,000	1,175,350
	Northern California Presbyterian Homes and Services Inc., Refunding, California Mortgage Insured, 5.00%, 7/01/39	1,450,000	1,683,291
	Northern California Presbyterian Homes and Services Inc., Refunding, California Mortgage Insured, 5.00%, 7/01/44	1,160,000	1,333,408
	Rady Children’s Hospital, 5.25%, 8/15/41	11,000,000	11,661,540
	Sutter Health, Refunding, Series A, 5.00%, 8/15/43	20,000,000	23,179,000
	Sutter Health, Refunding, Series A, 4.00%, 11/15/48	36,810,000	40,652,964
	Sutter Health, Refunding, Series B, 5.00%, 11/15/46	89,970,000	106,142,107
	Sutter Health, Series A, 4.00%, 11/15/42	11,680,000	13,044,808
	Sutter Health, Series A, 5.00%, 11/15/48	34,500,000	41,118,135
	Sutter Health, Series A, 5.00%, 8/15/52	89,990,000	98,704,632
	California HFA Municipal Certificates Revenue,
	Class A, 4.25%, 1/15/35	35,319,198	41,452,376
	Class A, Series 2, 4.00%, 3/20/33	30,000,000	34,364,400
	California Infrastructure and Economic Development Bank Revenue,
	Academy of Motion Picture Arts and Sciences Obligated Group, Refunding, Series A, 5.00%, 11/01/41	8,000,000	8,941,360
	Bay Area Toll Bridges Seismic Retrofit, first lien, Series A, AMBAC Insured, Pre-Refunded, 5.00%, 7/01/33	13,460,000	17,442,949
	Bay Area Toll Bridges Seismic Retrofit, first lien, Series A, FGIC Insured, Pre-Refunded, 5.00%, 7/01/29	50,985,000	65,847,127
	Clean Water State Revolving Fund, Green Bonds, 5.00%, 10/01/48	10,000,000	12,154,000
	Infrastructure SRF, Refunding, Series A, 5.00%, 10/01/40	4,015,000	4,726,137
	Infrastructure SRF, Refunding, Series A, 5.00%, 10/01/43	1,900,000	2,226,078
	California Municipal Finance Authority Mobile Home Park Revenue, Caritas Projects, Senior, Refunding, Series A, 4.00%, 8/15/52	27,350,000	28,591,690
	California State Community College Financing Authority College Housing Revenue, NCCD - Orange Coast Properties LLC - Orange Coast College Project, 5.25%, 5/01/53	8,150,000	9,508,198
	California State Educational Facilities Authority Revenue,
	Chapman University, 5.00%, 4/01/45	10,000,000	11,480,900
	Loma Linda University, Refunding, Series A, 5.00%, 4/01/47	11,000,000	12,786,070
	Loyola Marymount University, Capital Appreciation, Refunding, Series A, NATL Insured, zero cpn., 10/01/26	7,620,000	6,749,796
	Loyola Marymount University, Capital Appreciation, Refunding, Series A, NATL Insured, zero cpn., 10/01/27	7,365,000	6,350,177
	Loyola Marymount University, Capital Appreciation, Refunding, Series A, NATL Insured, zero cpn., 10/01/28	4,120,000	3,449,140

  |  3

Franklin California Tax-Free Income Fund
Statement of Investments (unaudited)

		Principal Amount	Value
	Municipal Bonds (continued)
	California (continued)
	California State Educational Facilities Authority Revenue, (continued)
	Loyola Marymount University, Capital Appreciation, Refunding, Series A, NATL Insured, zero cpn., 10/01/30	$5,685,000	$4,452,151
	Loyola Marymount University, Capital Appreciation, Refunding, Series A, NATL Insured, zero cpn., 10/01/31	7,615,000	5,763,794
	Loyola Marymount University, Capital Appreciation, Refunding, Series A, NATL Insured, zero cpn., 10/01/32	7,615,000	5,576,388
	Santa Clara University, Capital Appreciation, Refunding, AMBAC Insured, zero cpn., 9/01/26	5,150,000	4,137,459
	Santa Clara University, Refunding, 5.00%, 4/01/45	15,495,000	17,706,601
	Stanford University, Refunding, Series U-1, 5.25%, 4/01/40	24,960,000	37,404,557
	Stanford University, Refunding, Series U-3, 5.00%, 6/01/43	56,950,000	84,157,862
	Stanford University, Series U-4, 5.00%, 6/01/43	24,205,000	35,768,939
	Stanford University, Series U-6, 5.00%, 5/01/45	90,580,000	135,482,318
	Stanford University, Series V-1, 5.00%, 5/01/49	20,000,000	30,714,200
	University of San Francisco, Refunding, Series A, 5.00%, 10/01/48	10,000,000	12,104,300
	University of San Francisco, Refunding, Series A, 5.00%, 10/01/53	10,000,000	12,039,900
	California State GO,
	NATL Insured, 6.00%, 10/01/21	65,000	65,803
	Refunding, AGMC Insured, 5.25%, 8/01/32	50,000,000	68,345,000
	Various Purpose, 5.125%, 4/01/24	5,000	5,016
	Various Purpose, 6.00%, 5/01/24	2,565,000	2,607,836
	Various Purpose, 5.20%, 4/01/26	20,000	20,065
	Various Purpose, 5.25%, 11/01/40	69,685,000	72,084,255
	Various Purpose, 5.00%, 4/01/49	5,000,000	6,211,150
	Various Purpose, 5.00%, 10/01/49	12,000,000	15,041,040
	Various Purpose, AGMC Insured, 5.50%, 3/01/20	95,000	95,697
	Various Purpose, AMBAC Insured, 5.90%, 3/01/25	210,000	211,663
	Various Purpose, FGIC Insured, 5.375%, 6/01/26	1,335,000	1,359,057
	Various Purpose, NATL Insured, 6.00%, 8/01/24	990,000	993,920
	Various Purpose, NATL RE, FGIC Insured, 5.625%, 10/01/26	5,005,000	5,061,506
	Various Purpose, Refunding, 5.625%, 9/01/24	255,000	256,905
	Various Purpose, Refunding, 5.00%, 4/01/29	21,000,000	27,388,830
	Various Purpose, Refunding, 6.00%, 3/01/33	25,000,000	25,206,500
	Various Purpose, Refunding, 5.00%, 10/01/39	15,000,000	17,792,700
	Various Purpose, Refunding, 5.50%, 3/01/40	25,000,000	25,175,750
	Various Purpose, Refunding, 5.00%, 10/01/41	15,250,000	16,285,170
	Various Purpose, Refunding, 5.00%, 4/01/42	85,000,000	92,126,400
	Various Purpose, Refunding, 5.00%, 4/01/43	44,745,000	49,777,470
	Various Purpose, Refunding, 5.00%, 10/01/44	25,000,000	28,634,500
	Various Purpose, Refunding, 5.00%, 8/01/45	22,500,000	26,255,700
	Various Purpose, Refunding, 5.00%, 8/01/46	20,000,000	23,679,400
	Various Purpose, Refunding, 5.00%, 10/01/47	81,000,000	95,119,920
	Various Purpose, Refunding, 5.00%, 11/01/47	10,000,000	12,151,400
	California State Health Facilities Financing Authority Revenue,
	City of Hope Obligated Group, 5.00%, 11/15/49	37,000,000	43,748,060
	Providence Health and Services, Refunding, Series A, 5.00%, 10/01/38	5,110,000	5,853,761
	Providence Health and Services, Series A, Pre-Refunded, 5.00%, 10/01/38	3,890,000	4,605,215

  |  4

Franklin California Tax-Free Income Fund
Statement of Investments (unaudited)

		Principal Amount	Value
	Municipal Bonds (continued)
	California (continued)
	California State HFA, MF Green Mortgage-backed Revenue, Noble Towers Apartments, Green M-TEBS, Refunding, Series N, FNMA Insured, 2.35%, 12/01/35	$10,000,000	$10,006,300
	California State Infrastructure and Economic Develpment Bank Lease Revenue, California State Teachers Retirement System Headquarters Expansion, Green Bonds,
	Climate Bond Certified, 5.00%, 8/01/37	1,750,000	2,213,050
	Climate Bond Certified, 5.00%, 8/01/38	1,400,000	1,764,364
	Climate Bond Certified, 5.00%, 8/01/39	1,200,000	1,512,948
	Climate Bond Certified, 5.00%, 8/01/44	12,000,000	14,926,680
	Climate Bond Certified, 5.00%, 8/01/49	16,300,000	20,195,048
	California State Municipal Finance Authority Revenue,
	Channing House Project, Series B, California Mortgage Insured, 5.00%, 5/15/47	10,000,000	11,719,800
	Community Medical Centers, Refunding, Series A, 5.00%, 2/01/42	5,500,000	6,389,845
	Community Medical Centers, Refunding, Series A, 5.00%, 2/01/46	15,000,000	16,977,450
	Community Medical Centers, Refunding, Series A, 5.00%, 2/01/47	20,750,000	23,933,465
	Eisenhower Medical Center, Refunding, Series A, 5.00%, 7/01/42	5,100,000	5,904,831
	Eisenhower Medical Center, Refunding, Series A, 5.00%, 7/01/47	4,000,000	4,598,960
	Eisenhower Medical Center, Series A, Pre-Refunded, 5.75%, 7/01/40	7,000,000	7,164,990
	Inland Regional Center Project, Refunding, 5.00%, 6/15/45	23,300,000	26,295,215
	LINXS APM Project, senior lien, Series A, 5.00%, 12/31/43	78,650,000	91,874,997
	NCROC-Paradise Valley Estates Project, Series A, California Mortgage Insured, 5.00%, 1/01/43	10,000,000	11,944,100
	NCROC-Paradise Valley Estates Project, Series A, California Mortgage Insured, 5.00%, 1/01/49	18,990,000	22,446,560
	NorthBay Healthcare Group, Series A, 5.25%, 11/01/41	5,500,000	6,337,870
	NorthBay Healthcare Group, Series A, 5.00%, 11/01/47	8,650,000	9,702,100
	South Central Los Angeles Regional Center Project, 5.75%, 12/01/43	33,895,000	38,335,923
	University of La Verne, Refunding, Series A, 4.00%, 6/01/47	8,000,000	8,765,680
	California State Municipal Finance Authority Student Housing Revenue, CHF-Davis I LLC - West Village Student Housing Project, 5.00%, 5/15/48	10,000,000	11,801,700
	California State PCFA Revenue, San Jose Water Co. Project, 4.75%, 11/01/46	15,000,000	16,908,150
	California State PCFA Water Furnishing Revenue, San Diego County Water Authority Desalination Project Pipeline, Refunding, 5.00%, 11/21/45	9,155,000	10,834,576
	California State Public School District Financing Authority Lease Revenue, Southern Kern USD, Series B, AGMC Insured, ETM, 5.90%, 9/01/26	1,325,000	1,554,119
	California State Public Works Board Lease Revenue,
	Various Capital Projects, Refunding, Series G, 5.00%, 11/01/31	16,520,000	18,244,523
	Various Capital Projects, Series A, 5.00%, 4/01/31	48,070,000	52,044,428
	Various Capital Projects, Series A, 5.00%, 4/01/32	17,885,000	19,347,278
	Various Capital Projects, Series A, 5.00%, 4/01/37	29,000,000	31,303,760
	Various Capital Projects, Series A, Subseries A-1, Pre-Refunded, 5.50%, 3/01/25	8,700,000	8,765,424
	Various Capital Projects, Series A, Subseries A-1, Pre-Refunded, 6.00%, 3/01/35	10,000,000	10,083,100
	Various Capital Projects, Series I, 5.00%, 11/01/38	40,000,000	44,983,200
	Various Judicial Council Projects, Series D, 5.00%, 12/01/31	15,000,000	16,076,100
	California State University Revenue,
	Systemwide, Refunding, Series A, 5.00%, 11/01/39	23,000,000	26,595,590
	Systemwide, Refunding, Series A, 5.00%, 11/01/39	19,920,000	24,891,434
	Systemwide, Refunding, Series A, 5.00%, 11/01/42	29,105,000	35,045,622
	Systemwide, Refunding, Series A, 5.00%, 11/01/42	29,645,000	31,629,733
	Systemwide, Refunding, Series A, 5.00%, 11/01/43	16,870,000	20,854,188
	Systemwide, Refunding, Series A, 5.00%, 11/01/43	11,000,000	12,872,530
	Systemwide, Refunding, Series A, 5.00%, 11/01/44	32,345,000	37,077,397

  |  5

Franklin California Tax-Free Income Fund
Statement of Investments (unaudited)

		Principal Amount	Value
	Municipal Bonds (continued)
	California (continued)
	California State University Revenue, (continued)
	Systemwide, Refunding, Series A, 5.00%, 11/01/47	$63,000,000	$75,276,180
	Systemwide, Refunding, Series A, 5.00%, 11/01/50	17,385,000	21,301,493
	Systemwide, Series A, 5.00%, 11/01/44	45,130,000	56,735,631
	Systemwide, Series A, 5.00%, 11/01/49	90,295,000	112,889,518
	Systemwide, Series A, 5.00%, 11/01/51	40,470,000	50,432,905
	California Statewide CDA,
	COP, Citrus Valley Health Partners Inc., NATL Insured, 5.125%, 4/01/23	4,915,000	4,933,284
	COP, Insured Health Facilities, UniHealth America, Series A, AMBAC Insured, Pre-Refunded, 5.75%, 10/01/25	4,540,000	4,848,856
	MFHR, 740 S. Olive Street Apartments, Series L, GNMA Secured, 5.10%, 7/20/50	10,000,000	10,207,400
	California Statewide CDA Revenue,
	Adventist Health System/West, Refunding, Series A, 5.00%, 3/01/35	9,250,000	10,872,635
	Adventist Health System/West, Refunding, Series A, 5.00%, 3/01/48	67,585,000	80,216,636
	Cottage Health System Obligated Group, Refunding, 5.25%, 11/01/30	18,500,000	19,105,690
	Cottage Health System Obligated Group, Refunding, 5.00%, 11/01/40	56,000,000	57,398,880
	Henry Mayo Newhall Memorial Hospital, Refunding, Series A, AGMC Insured, 5.25%, 10/01/43	3,000,000	3,375,720
	Huntington Memorial Hospital Project, 5.00%, 7/01/48	7,980,000	9,489,736
	Insured Health Facility, CLARE Foundation Inc. and Principals Inc., Refunding, Series A, California Mortgage Insured, 5.00%, 8/01/21	315,000	316,027
	Insured Health Facility, North County Serenity House Inc., Refunding, California Mortgage Insured, 5.50%, 1/01/28	2,560,000	2,569,062
	Kaiser Permanente, Series A, 5.00%, 4/01/42	88,945,000	96,340,777
	Poway RHF Housing Inc., Series A, California Mortgage Insured, 5.25%, 11/15/35	2,000,000	2,298,080
	The Redwoods, a Community of Seniors Project, Refunding, California Mortgage Insured, 5.125%, 11/15/35	2,000,000	2,288,680
	The Redwoods, a Community of Seniors Project, Refunding, California Mortgage Insured, 5.375%, 11/15/44	7,250,000	8,262,680
	California Statewide CDA Student Housing Revenue,
	University of California, Irvine East Campus Apartments, Phase I, CHF-Irvine LLC, Refunding, 5.125%, 5/15/31	8,000,000	8,427,520
	University of California, Irvine East Campus Apartments, Phase I, CHF-Irvine LLC, Refunding, 5.375%, 5/15/38	8,500,000	8,963,590
	California Statewide CDA Water and Wastewater Revenue, Pooled Financing Program, Monterey Merced Los Angeles san Bernardino County, Series A, AGMC Insured, 5.25%, 10/01/24	275,000	275,930
	Campbell USD,
	GO, Capital Appreciation, Series B, NATL Insured, zero cpn., 8/01/20	5,000,000	4,967,850
	GO, Capital Appreciation, Series B, NATL Insured, zero cpn., 8/01/21	6,280,000	6,169,221
	Carlsbad USD,
	GO, San Diego County, Capital Appreciation, Election of 2006, Series B, 6.00%, 5/01/34	14,000,000	16,904,440
	GO, San Diego County, Capital Appreciation, Election of 2006, Series C, zero cpn. to 8/01/26, 6.625% thereafter, 8/01/35	33,000,000	36,776,850
	Castaic USD, COP, Refunding, AGMC Insured, 5.125%, 9/01/33	1,000,000	1,023,740
	Castro Valley USD, COP, Solar Projects, AGMC Insured, 5.00%, 9/01/32	2,620,000	2,766,222
	Centinela Valley UHSD,
	GO, Los Angeles County, Election of 2010, Series B, AGMC Insured, 5.00%, 8/01/50	3,850,000	4,239,890
	GO, Los Angeles County, Refunding, Series A, NATL Insured, 5.50%, 8/01/33	15,630,000	20,244,132
	Cerritos PFAR Tax Allocation, Redevelopment Project, Refunding, Series A, AMBAC Insured, 5.00%, 11/01/22	1,675,000	1,737,796

  |  6

Franklin California Tax-Free Income Fund
Statement of Investments (unaudited)

		Principal Amount	Value
	Municipal Bonds (continued)
	California (continued)
	Chaffey Community College District GO, San Bernardino County, Election of 2018, Series A, 5.00%, 6/01/48	$30,000,000	$36,516,300
	Chaffey Joint UHSD, GO, San Bernardino County, Election of 2012, Series B, 5.00%, 8/01/44	27,500,000	31,598,325
	Charter Oak USD, GO, Los Angeles County, Election of 2012, Refunding, Series A, AGMC Insured, 5.00%, 8/01/40	5,000,000	5,799,400
	Chico USD, GO, Election of 2012, Series A, 5.00%, 8/01/43	8,000,000	8,982,720
	Chula Vista IDR, San Diego Gas and Electric Co., Refunding, Series A, 5.875%, 2/15/34	17,500,000	17,568,425
	Cloverdale USD, GO, Sonoma County, Election of 2018, Refunding, Series B, 4.00%, 8/01/49	10,000,000	11,186,800
	Coachella Valley USD,
	GO, Riverside and Imperial Counties, Capital Appreciation, Election of 2005, Series C, AGMC Insured, zero cpn., 8/01/36	8,000,000	5,180,480
	GO, Riverside and Imperial Counties, Capital Appreciation, Election of 2005, Series C, AGMC Insured, zero cpn., 8/01/37	8,000,000	4,978,400
	GO, Riverside and Imperial Counties, Capital Appreciation, Election of 2005, Series C, AGMC Insured, zero cpn., 8/01/40	7,500,000	4,198,200
	GO, Riverside and Imperial Counties, Capital Appreciation, Election of 2005, Series C, AGMC Insured, zero cpn., 8/01/43	10,000,000	5,009,900
	Coalinga-Huron Joint USD, GO, Fresno Monterey and San Benito Counties, Election of 2016, Series B, BAM Insured, 5.00%, 8/01/48	13,210,000	15,622,806
	College of the Sequoias Visalia Area ID No. 2 GO, Election of 2008, Series B, AGMC Insured, 5.00%, 8/01/39	3,000,000	3,061,200
	Colton Joint USD, GO, San Bernardino and Riverside Counties, Capital Appreciation, Election of 2008, Series B, AGMC Insured, zero cpn., 8/01/42	16,365,000	8,245,505
	Compton CRDA Tax Allocation,
	Redevelopment Project, second lien, Series B, 5.70%, 8/01/30	10,000,000	10,206,600
	Redevelopment Project, second lien, Series B, 6.00%, 8/01/35	11,160,000	11,400,610
	Redevelopment Project, second lien, Series B, 6.00%, 8/01/42	10,000,000	10,212,700
	Corona-Norco USD,
	GO, Riverside County, Capital Appreciation, Series B, AGMC Insured, zero cpn., 9/01/23	2,320,000	2,203,652
	GO, Riverside County, Capital Appreciation, Series B, AGMC Insured, zero cpn., 9/01/24	2,620,000	2,444,172
	GO, Riverside County, Capital Appreciation, Series B, AGMC Insured, zero cpn., 3/01/25	1,400,000	1,292,494
	GO, Riverside County, Capital Appreciation, Series C, NATL Insured, zero cpn., 9/01/25	4,655,000	4,235,864
	GO, Riverside County, Capital Appreciation, Series C, NATL Insured, zero cpn., 9/01/26	6,080,000	5,402,931
	GO, Riverside County, Election of 2014, Series A, 5.00%, 8/01/44	20,000,000	23,144,400
	Covina PFA Water Revenue, AGMC Insured, 5.50%, 10/01/40	3,500,000	3,609,025
	Daly City Housing Development Finance Agency Mobile Home Park Revenue, Franciscan Mobile Home Park Acquisition Project, senior bond, Refunding, Series A, 5.00%, 12/15/47	17,870,000	17,911,637
	Delano UHSD, GO, Refunding, Series A, NATL Insured, 5.15%, 2/01/32	8,520,000	10,547,930
	Delano USD, COP, Refinancing Project, NATL Insured, 5.125%, 1/01/22	1,015,000	1,046,678
	East Bay MUD Water System Revenue,
	Alameda and Contra Costa Counties, Refunding, Series A, 5.00%, 6/01/35	10,000,000	11,623,200
	Alameda and Contra Costa Counties, Refunding, Series A, 5.00%, 6/01/36	7,355,000	8,760,173
	Alameda and Contra Costa Counties, Series C, 5.00%, 6/01/44	14,000,000	15,876,700
	Alameda and Contra Costa Counties, Series C, 4.00%, 6/01/45	9,070,000	10,013,552
	Eastern California Municipal Water District Financing Authority Water and Wastewater Revenue, Series B, 5.00%, 7/01/46	30,705,000	35,564,066
	Elk Grove Finance Authority Special Tax Revenue, BAM Insured, 5.00%, 9/01/38	1,500,000	1,745,520
	Escondido UHSD,
	COP, Public School Facilities Project, Series A, AGMC Insured, 5.00%, 6/01/33	3,500,000	3,549,805
	COP, Public School Facilities Project, Series A, AGMC Insured, 5.00%, 6/01/37	2,500,000	2,535,475

  |  7

Franklin California Tax-Free Income Fund
Statement of Investments (unaudited)

		Principal Amount	Value
	Municipal Bonds (continued)
	California (continued)
	Fairfax Elementary School District GO,
	Capital Appreciation, Election of 2010, Refunding, AGMC Insured, zero cpn., 11/01/48	$10,380,000	$3,799,495
	Election of 2010, AGMC Insured, 5.75%, 11/01/40	2,250,000	2,431,440
	Folsom Cordova USD, GO, School Facilities ID No. 5, Election of 2014, Sacramento County, Series C, 4.00%, 10/01/43	17,500,000	19,640,950
	Foothill/Eastern Transportation Corridor Agency Toll Road Revenue,
	Capital Appreciation, Refunding, Series A, AGMC Insured, zero cpn., 1/15/37	41,250,000	25,573,762
	Capital Appreciation, Refunding, Series A, AGMC Insured, zero cpn., 1/15/38	77,650,000	46,436,253
	Capital Appreciation, Refunding, Series A, AGMC Insured, zero cpn., 1/15/39	56,100,000	32,333,235
	Capital Appreciation, Refunding, Series A, AGMC Insured, zero cpn. to 1/15/24, 5.50% thereafter, 1/15/31	35,000,000	38,377,500
	Capital Appreciation, Refunding, Series A, AGMC Insured, zero cpn. to 1/15/24, 5.625% thereafter, 1/15/32	37,260,000	41,009,101
	Capital Appreciation, Refunding, Series A, zero cpn., 1/15/42	130,000,000	61,171,500
	Capital Appreciation, Refunding, Series A, zero cpn. to 1/14/24, 6.85% thereafter, 1/15/42	98,000,000	103,376,280
	Capital Appreciation, senior lien, Series A, ETM, zero cpn., 1/01/22	30,835,000	30,173,589
	Capital Appreciation, senior lien, Series A, ETM, zero cpn., 1/01/23	5,765,000	5,570,431
	Capital Appreciation, senior lien, Series A, ETM, zero cpn., 1/01/24	72,045,000	68,601,249
	Capital Appreciation, senior lien, Series A, ETM, zero cpn., 1/01/25	20,660,000	19,374,948
	Capital Appreciation, senior lien, Series A, ETM, zero cpn., 1/01/26	23,475,000	21,655,922
	Capital Appreciation, senior lien, Series A, ETM, zero cpn., 1/01/27	15,000,000	13,558,200
	Capital Appreciation, senior lien, Series A, ETM, zero cpn., 1/01/28	2,000,000	1,770,560
	Capital Appreciation, senior lien, Series A, ETM, zero cpn., 1/01/29	35,310,000	30,241,956
	Refunding, Series A, 5.75%, 1/15/46	260,000,000	298,932,400
	Refunding, Series A, AGMC Insured, 5.00%, 1/15/42	10,000,000	11,173,000
	Series A, Pre-Refunded, 6.00%, 1/15/49	305,000,000	366,475,800
	Series A, Pre-Refunded, 6.00%, 1/15/53	190,000,000	228,296,400
	Fort Bragg USD, GO, Election of 2008, AGMC Insured, Pre-Refunded, 5.125%, 8/01/41	4,380,000	4,670,657
	Fowler USD,
	GO, Fresno County, Capital Appreciation, Election of 2004, Series C, AGMC Insured, zero cpn., 8/01/41	3,095,000	1,668,143
	GO, Fresno County, Capital Appreciation, Election of 2004, Series C, AGMC Insured, zero cpn., 8/01/42	3,005,000	1,556,350
	GO, Fresno County, Election of 2004, Series C, AGMC Insured, 5.25%, 8/01/39	3,555,000	3,636,374
	Franklin-McKinley School District GO, Santa Clara County, Election of 2010, Series C, BAM Insured, Pre-Refunded, 5.00%, 8/01/44	5,000,000	5,723,950
	Freddie Mac MF ML Certificates Revenue, Pass - Through ML06, Class A, 2.493%, 7/25/35	52,905,839	53,551,512
	Fresno USD,
	GO, Capital Appreciation, Election of 2001, Series G, zero cpn., 8/01/41	47,000,000	11,607,120
	GO, Capital Appreciation, Election of 2010, Refunding, Series B, zero cpn., 8/01/41	35,000,000	8,643,600
	GO, Refunding, Series C, NATL Insured, 5.90%, 2/01/20	2,065,000	2,072,806
	GO, Refunding, Series C, NATL Insured, 5.90%, 8/01/22	3,000,000	3,241,080
	Fullerton School District Financing Authority Special Tax Revenue, senior lien, Refunding, Series A, AGMC Insured, 5.00%, 9/01/31	2,500,000	2,797,025
	Fullerton School District GO, Capital Appreciation, Series A, NATL Insured, zero cpn., 8/01/23	3,030,000	2,888,832
	Glendale Community College District GO, Capital Appreciation, NATL Insured, zero cpn., 8/01/28	15,000,000	11,424,150
	Glendora PFAR Tax Allocation, Project No. 1, Refunding, Series A, NATL Insured, 5.00%, 9/01/24	4,535,000	4,550,011

  |  8

Franklin California Tax-Free Income Fund
Statement of Investments (unaudited)

		Principal Amount	Value
	Municipal Bonds (continued)
	California (continued)
	Golden State Tobacco Securitization Corp. Enhanced Tobacco Settlement Revenue,
	Asset-Backed, Series A, 5.00%, 6/01/35	$25,000,000	$29,201,000
	Asset-Backed, Series A, 5.00%, 6/01/40	212,525,000	245,610,892
	Asset-Backed, Series A, 5.00%, 6/01/45	308,395,000	354,185,490
	Golden State Tobacco Securitization Corp. Tobacco Settlement Revenue, Asset-Backed, Refunding, Series A-1, 5.00%, 6/01/35	28,340,000	33,390,471
	Grossmont UHSD, GO, San Diego County, Capital Appreciation, Election of 2004, AGMC Insured, zero cpn., 8/01/24	5,110,000	4,777,799
	Hacienda La Puente USD, GO, Los Angeles County, Election of 2016, Series A, 4.00%, 8/01/47	655,000	721,777
	Hartnell Community College District GO, Monterey and San Benito Counties, Capital Appreciation, Election of 2002, zero cpn. to 8/01/22, 6.125% thereafter, 8/01/33	20,000,000	25,244,800
	Hawthorne School District GO, Capital Appreciation, Election of 2004, Series C, Assured Guaranty, zero cpn., 8/01/48	37,665,000	13,749,608
	Hayward USD, GO, Alameda County, Capital Appreciation, Election of 2008, Series A, AGMC Insured, Pre-Refunded, zero cpn., 8/01/38	9,875,000	2,717,896
	Healdsburg RDA Tax Allocation Revenue, Sotoyome Community Development Project, Pre-Refunded, 5.375%, 8/01/34	7,750,000	7,948,400
	Huntington Beach City School District GO, Capital Appreciation, Election of 2002, Series A, NATL Insured, zero cpn., 8/01/28	10,005,000	8,470,533
	Huntington Beach UHSD, COP, Adult Education Project, AGMC Insured, 5.25%, 9/01/39	2,000,000	2,051,540
	Inland Empire Tobacco Securitization Authority Revenue, Tobacco Settlement Asset-Backed, Inland Empire Tobacco Securitization Corp., Capital Appreciation, Series B, Pre-Refunded, 5.75%, 6/01/26	11,140,000	11,360,572
	Irvine USD Special Tax,
	CFD No. 01-1, South Irvine Communities, Refunding, BAM Insured, 5.00%, 9/01/38	7,000,000	7,990,290
	CFD No. 09-1, Series D, 5.00%, 3/01/57	10,000,000	11,508,300
	Jefferson UHSD San Mateo County GO,
	Refunding, Series A, NATL Insured, 6.45%, 8/01/25	3,045,000	3,565,756
	Refunding, Series A, NATL Insured, 6.45%, 8/01/29	3,075,000	4,054,019
	Jurupa PFA Special Tax Revenue,
	Refunding, Series A, AGMC Insured, 5.25%, 9/01/42	3,250,000	3,671,655
	Series A, AGMC Insured, 5.125%, 9/01/37	4,000,000	4,528,120
	Jurupa PFAR, superior lien, Refunding, Series A, AGMC Insured, 5.00%, 9/01/30	4,000,000	4,096,760
	Jurupa USD, GO, Riverside County, Election of 2014, Series A, 5.00%, 8/01/39	10,165,000	11,863,165
	La Habra COP, Park La Habra and Viewpark Refinancing Project, Refunding, Series A, AGMC Insured, 5.25%, 9/01/40	7,900,000	8,099,791
	La Mirada RDA Tax Allocation, Merged Project Area, Refunding, Series A, AGMC Insured, 5.00%, 8/15/28	1,855,000	1,897,461
	La Palma Community Development Commission Tax Allocation, La Palma Community Development Project No. 1, Refunding, 6.10%, 6/01/22	170,000	171,882
	Lake Elsinore USD,
	COP, School Facilities Project Funding Program, AGMC Insured, 5.00%, 6/01/42	10,000,000	10,146,900
	GO, Riverside County, General, Election of 2016, Series B, 4.00%, 8/01/49	12,330,000	13,593,208
	Lakeside USD San Diego County GO, Capital Appreciation, Election of 2008, Series B, zero cpn., 8/01/45	11,540,000	4,974,086
	Lammersville Joint USD, GO, Election of 2016, Series A, 4.00%, 8/01/46	41,340,000	45,076,723
	Lancaster School District GO,
	Capital Appreciation, Election of 1999, NATL Insured, zero cpn., 8/01/25	5,495,000	5,003,033
	Capital Appreciation, Election of 1999, NATL Insured, zero cpn., 7/01/26	5,965,000	5,320,422

  |  9

Franklin California Tax-Free Income Fund
Statement of Investments (unaudited)

		Principal Amount	Value
	Municipal Bonds (continued)
	California (continued)
	Lawndale RDA Tax Allocation,
	Economic Revitalization Project, Assured Guaranty, 5.50%, 8/01/39	$10,280,000	$10,313,410
	Economic Revitalization Project, Assured Guaranty, 5.50%, 8/01/44	6,085,000	6,104,594
	Lemon Grove School District GO, Capital Appreciation, Election of 2008, Series B, AGMC Insured, zero cpn., 8/01/50	20,990,000	7,506,654
	Lodi USD, GO, San Joaquin County, Election of 2016, 4.00%, 8/01/41	15,000,000	16,681,050
	Long Beach Bond Finance Authority Natural Gas Purchase Revenue,
	Series A, 5.50%, 11/15/28	8,000,000	10,240,880
	Series A, 5.00%, 11/15/29	17,465,000	21,933,246
	Series A, 5.50%, 11/15/30	5,000,000	6,588,450
	Series A, 5.00%, 11/15/35	69,800,000	92,521,296
	Series A, 5.50%, 11/15/37	35,000,000	49,473,550
	Long Beach Harbor Revenue,
	Series A, 5.00%, 5/15/44	12,210,000	15,239,057
	Series A, 5.00%, 5/15/49	18,205,000	22,594,954
	Long Beach USD, GO, County of Los Angeles, Election of 2016, Series B, 4.00%, 8/01/45	19,500,000	22,213,620
	Los Angeles Community College District GO,
	Election of 2008, Series K, 4.00%, 8/01/38	9,360,000	10,538,892
	Election of 2008, Series K, 4.00%, 8/01/39	3,000,000	3,367,080
	Refunding, 5.00%, 8/01/38	10,000,000	11,976,300
	Los Angeles County MTA Sales Tax Revenue,
	Measure R, Senior, Refunding, Series A, 5.00%, 6/01/35	17,655,000	21,414,809
	Measure R, Senior, Refunding, Series A, 5.00%, 6/01/37	10,970,000	13,228,394
	Measure R, Senior, Refunding, Series A, 5.00%, 6/01/38	28,160,000	33,792,000
	Measure R, Senior, Refunding, Series A, 5.00%, 6/01/39	10,000,000	11,963,200
	Los Angeles County Revenue, TRAN, 5.00%, 6/30/20	25,000,000	25,497,000
	Los Angeles County Sanitation Districts Financing Authority Revenue, Capital Projects, District No. 20, Green Bonds, Refunding, Series A, 4.00%, 10/01/42	16,430,000	18,046,876
	Los Angeles Department of Airports Revenue,
	Los Angeles International Airport, Senior, Refunding, Series A, 5.00%, 5/15/40	19,445,000	19,724,230
	Los Angeles International Airport, Senior, Series D, 5.00%, 5/15/35	80,000,000	81,148,800
	Los Angeles International Airport, Senior, Series D, 5.00%, 5/15/40	30,000,000	30,430,800
	Los Angeles International Airport, Senior, Series D, 5.00%, 5/15/41	14,500,000	16,609,315
	Los Angeles International Airport, Subordinate, Refunding, Series A, 5.00%, 5/15/49	10,000,000	12,071,900
	Los Angeles International Airport, Subordinate, Refunding, Series E, 5.00%, 5/15/43	15,005,000	18,691,428
	Los Angeles International Airport, Subordinate, Refunding, Series E, 5.00%, 5/15/48	33,145,000	40,989,759
	Los Angeles International Airport, Subordinate, Refunding, Series F, 5.00%, 5/15/44	18,000,000	21,867,120
	Los Angeles International Airport, Subordinate, Refunding, Series F, 3.00%, 5/15/49	18,500,000	18,484,275
	Los Angeles International Airport, Subordinate, Series A, 5.00%, 5/15/44	60,000,000	71,950,200
	Los Angeles International Airport, Subordinate, Series A, 5.00%, 5/15/47	33,000,000	38,754,210
	Los Angeles International Airport, Subordinate, Series B, 5.00%, 5/15/41	12,500,000	14,602,750
	Los Angeles International Airport, Subordinate, Series B, 5.00%, 5/15/46	53,000,000	61,477,350
	Los Angeles International Airport, Subordinate, Series D, 5.00%, 5/15/49	17,000,000	20,444,200
	Los Angeles International Airport, Subordinate, Series E, 5.00%, 5/15/44	42,325,000	52,121,544
	Los Angeles International Airport, Subordinate, Series E, 5.00%, 5/15/49	62,940,000	77,039,819

  |  10

Franklin California Tax-Free Income Fund
Statement of Investments (unaudited)

		Principal Amount	Value
	Municipal Bonds (continued)
	California (continued)
	Los Angeles Department of Water and Power Revenue,
	Power System, Refunding, Series A, 5.00%, 7/01/35	$15,105,000	$17,714,238
	Power System, Refunding, Series A, 5.00%, 7/01/36	17,795,000	20,832,251
	Power System, Refunding, Series A, 5.00%, 7/01/46	15,000,000	17,717,100
	Power System, Refunding, Series C, 5.00%, 7/01/42	36,860,000	46,331,177
	Power System, Refunding, Series C, 5.00%, 7/01/49	127,130,000	158,271,765
	Power System, Series A, 5.00%, 7/01/42	7,710,000	9,233,265
	Power System, Series A, 5.00%, 7/01/47	11,000,000	13,086,040
	Power System, Series B, 5.00%, 7/01/35	11,995,000	14,441,740
	Power System, Series B, 5.00%, 7/01/43	62,000,000	70,226,780
	Power System, Series D, 5.00%, 7/01/44	51,940,000	59,606,344
	Power System, Series E, 5.00%, 7/01/44	34,000,000	39,018,400
	Water System, Refunding, Series A, 5.00%, 7/01/43	81,095,000	88,726,039
	Water System, Refunding, Series A, 5.00%, 7/01/46	62,660,000	74,088,557
	Water System, Refunding, Series B, 5.00%, 7/01/48	10,000,000	12,243,100
	Water System, Series A, 5.00%, 7/01/43	13,805,000	16,838,649
	Water System, Series A, 5.00%, 7/01/44	72,060,000	86,132,597
	Water System, Series A, 5.00%, 7/01/44	50,000,000	57,426,500
	Water System, Series A, 5.00%, 7/01/48	22,375,000	27,122,527
	Los Angeles Harbor Department Revenue, Exempt Facility, Refunding, Series B, 5.00%, 8/01/44	10,300,000	11,724,284
	Los Angeles Mortgage Revenue, FHA Insured Mortgage Loans, Section 8 Assisted Projects, Refunding, Series 1, NATL Insured, 6.50%, 7/01/22	225,000	225,846
	Los Angeles Wastewater System Revenue,
	Green Bonds, Refunding, Series C, 5.00%, 6/01/45	24,690,000	28,796,194
	Green Bonds, Series A, 5.00%, 6/01/44	9,000,000	10,507,230
	Los Angels Department of Water and Power Revenue,
	Power System, Refunding, Series D, 5.00%, 7/01/44	17,430,000	21,820,617
	Power System, Series D, 5.00%, 7/01/49	22,000,000	27,389,120
	Los Gatos-Saratoga Joint UHSD,
	GO, Santa Clara and Santa Cruz Counties, Election of 2014, Series A, 4.00%, 8/01/39	10,635,000	11,461,765
	GO, Santa Clara and Santa Cruz Counties, Election of 2014, Series A, 4.00%, 8/01/44	16,090,000	17,231,103
	Madera County COP,
	Valley Children’s Hospital Project, NATL Insured, 5.00%, 3/15/23	6,960,000	6,985,265
	Valley Children’s Hospital Project, NATL Insured, 5.75%, 3/15/28	27,500,000	27,605,050
	McFarland PFAR, Water and Wastewater Financing Projects, Series A, AGMC Insured, 5.00%, 10/01/40	5,115,000	5,251,161
	Mendocino-Lake Community College District GO, Election of 2006, Series B, AGMC Insured, 5.125%, 8/01/41	7,500,000	7,916,100
	The Metropolitan Water District of Southern California Water Revenue, Authorization, Series A, 5.00%, 7/01/40	10,000,000	11,754,600
	Midpeninsula Regional Open Space District GO, Green Bond, 4.00%, 9/01/48	11,220,000	12,592,767
	Milpitas RDA Tax Allocation, Redevelopment Project Area No. 1, NATL Insured, ETM, 5.50%, 1/15/24	8,860,000	9,614,783
	Modesto High School District Stanislaus County GO,
	Capital Appreciation, Series A, NATL Insured, zero cpn., 8/01/21	9,660,000	9,468,829
	Capital Appreciation, Series A, NATL Insured, zero cpn., 8/01/23	10,815,000	10,278,143
	Capital Appreciation, Series A, NATL Insured, zero cpn., 5/01/27	12,770,000	11,185,754

  |  11

Franklin California Tax-Free Income Fund
Statement of Investments (unaudited)

		Principal Amount	Value
	Municipal Bonds (continued)
	California (continued)
	Monterey Peninsula USD,
	GO, Election of 2010, Series A, AGMC Insured, Pre-Refunded, 5.75%, 8/01/41	$17,500,000	$18,846,625
	GO, Election of 2010, Series C, 5.00%, 8/01/41	11,190,000	13,253,100
	Moorpark USD, GO, Capital Appreciation, Election of 2008, Series A, Assured Guaranty, zero cpn., 8/01/32	5,870,000	4,385,125
	Moreno Valley USD,
	GO, Riverside County, Capital Appreciation, Election of 2004, AGMC Insured, zero cpn., 8/01/27	6,315,000	5,638,853
	GO, Riverside County, Capital Appreciation, Election of 2004, AGMC Insured, zero cpn., 8/01/28	6,625,000	5,798,266
	GO, Riverside County, Election of 2014, Series A, AGMC Insured, 5.00%, 8/01/44	29,220,000	33,797,021
	Mount San Antonio Community College District GO, Los Angeles County, Capital Appreciation, Election of 2008, Series A, zero cpn. to 8/01/28, 6.25% thereafter, 8/01/43	55,000,000	54,825,650
	M-S-R Energy Authority Gas Revenue, Series B, 6.50%, 11/01/39	25,000,000	39,133,500
	M-S-R Public Power Agency San Juan Project Revenue, Series E, NATL Insured, ETM, 6.00%, 7/01/22	5,440,000	5,869,270
	Needles PFAR Tax Allocation, Redevelopment Project, Series A, 7.50%, 8/15/22	420,000	420,840
	Newport Mesa USD, GO, Capital Appreciation, Election of 2005, zero cpn. to 7/31/21, 6.30% thereafter, 8/01/42	20,000,000	25,697,000
	Northern California Public Power Agency Revenue, AMBAC Insured, Pre-Refunded, 7.50%, 7/01/23	1,980,000	2,132,381
	Oak Grove School District GO, Capital Appreciation, Election of 2008, Series B-1, Pre-Refunded, zero cpn., 6/01/41	36,240,000	8,324,328
	Oak View USD, GO, San Joaquin County, Election of 2008, Series A, AGMC Insured, Pre-Refunded, 5.00%, 8/01/49	1,895,000	1,939,987
	Oceanside USD,
	GO, San Diego County, Capital Appreciation, Election of 2008, Series B, AGMC Insured, zero cpn., 8/01/38	10,590,000	6,469,537
	GO, San Diego County, Capital Appreciation, Election of 2008, Series B, AGMC Insured, zero cpn., 8/01/39	7,860,000	4,644,867
	GO, San Diego County, Refunding, 5.00%, 8/01/48	12,000,000	13,908,840
	Ontario-Montclair School District GO, San Bernardino County, Election of 2016, Series A, 5.00%, 8/01/46	11,765,000	14,006,585
	Orange County Sanitation District Revenue, Wastewater, Refunding, Series A, 5.00%, 2/01/36	8,350,000	9,713,054
	Orange County Water District Revenue COP,
	Series B, NATL Insured, ETM, 5.00%, 8/15/28	13,740,000	17,016,990
	Series B, NATL Insured, ETM, 5.00%, 8/15/34	3,305,000	4,447,340
	Series B, NATL Insured, Pre-Refunded, 5.00%, 8/15/34	4,140,000	5,702,395
	Orange Special Tax, CFD No. 06-1, Del Rio Public Improvements, Refunding, AGMC Insured, 5.00%, 10/01/40	7,500,000	8,624,775
	Oxnard School District GO, Ventura County, Election of 2012, Series C, BAM Insured, 4.00%, 8/01/44	10,755,000	11,469,562
	Palomar Community College District GO,
	Capital Appreciation, Election of 2006, Series B, zero cpn. to 8/01/25, 6.20% thereafter, 8/01/39	69,410,000	82,221,004
	Election of 2006, Series C, 5.00%, 8/01/44	35,120,000	40,842,804
	Palomar Health Revenue, Refunding, AGMC Insured, 5.00%, 11/01/47	35,000,000	41,062,700
	Palomar Pomerado Health GO,
	Capital Appreciation, Election of 2004, Series A, Assured Guaranty, 7.00% thereafter, 8/01/38	36,000,000	49,831,560
	Capital Appreciation, Election of 2004, Series A, zero cpn. to 8/01/20, 6.75% thereafter, 8/01/40	60,000,000	80,391,600
	Paramount USD,
	GO, Los Angeles County, Capital Appreciation, Election of 2006, BAM Insured, zero cpn., 8/01/43	32,000,000	7,887,360
	GO, Los Angeles County, Capital Appreciation, Election of 2006, BAM Insured, zero cpn., 8/01/48	28,000,000	4,636,240
	GO, Los Angeles County, Election of 2006, AGMC Insured, 5.00%, 8/01/46	11,270,000	11,884,328
	GO, Los Angeles County, Election of 2006, BAM Insured, 5.00%, 8/01/48	2,450,000	2,728,198

  |  12

Franklin California Tax-Free Income Fund
Statement of Investments (unaudited)

		Principal Amount	Value
	Municipal Bonds (continued)
	California (continued)
	Pasadena Electric Revenue, Refunding, Series A, 4.00%, 6/01/46	$22,625,000	$24,627,991
	Patterson Joint USD,
	GO, Stanislaus and Santa Clara Counties, Capital Appreciation, Election of 2001, Series A, NATL Insured, zero cpn., 8/01/22	1,900,000	1,831,391
	GO, Stanislaus and Santa Clara Counties, Capital Appreciation, Election of 2001, Series A, NATL Insured, zero cpn., 8/01/23	1,985,000	1,879,120
	GO, Stanislaus and Santa Clara Counties, Capital Appreciation, Election of 2001, Series A, NATL Insured, zero cpn., 8/01/24	2,075,000	1,922,550
	GO, Stanislaus and Santa Clara Counties, Capital Appreciation, Election of 2001, Series A, NATL Insured, zero cpn., 8/01/25	2,170,000	1,962,657
	GO, Stanislaus and Santa Clara Counties, Capital Appreciation, Election of 2001, Series A, NATL Insured, zero cpn., 8/01/26	2,265,000	1,994,310
	Perris SFMR, Capital Appreciation, Series A, GNMA Secured, ETM, zero cpn., 6/01/23	19,095,000	18,127,647
	Perris UHSD,
	COP, School Financing Project, BAM Insured, 5.00%, 10/01/48	10,000,000	12,211,600
	GO, Riverside County, Election of 2012, Series A, AGMC Insured, 5.00%, 9/01/42	5,000,000	5,625,300
	Pittsburg USD, GO, Contra Costa County, Refunding, 4.00%, 8/01/44	11,000,000	12,102,640
	Pittsburg USD Financing Authority Revenue, Board Program, AGMC Insured, Pre-Refunded, 5.50%, 9/01/46	9,980,000	10,721,314
	Placentia-Yorba Linda USD,
	GO, Capital Appreciation, Election of 2008, Series D, zero cpn., 8/01/43	27,955,000	14,136,005
	GO, Capital Appreciation, Election of 2008, Series D, zero cpn., 8/01/46	89,200,000	38,785,052
	GO, Capital Appreciation, Election of 2008, Series D, zero cpn., 8/01/49	85,000,000	32,913,700
	Pleasanton USD, COP, AGMC Insured, Pre-Refunded, 5.00%, 8/01/29	4,000,000	4,094,960
	Pomona USD, GO, Election of 2008, Series C, AGMC Insured, 5.25%, 8/01/40	16,000,000	16,967,840
	Poway RDA Successor Agency Tax Allocation,
	Paguay Redevelopment Project, Refunding, Series A, 5.00%, 12/15/31	10,180,000	13,675,099
	Paguay Redevelopment Project, Refunding, Series A, 5.00%, 12/15/32	11,215,000	15,244,213
	Paguay Redevelopment Project, Refunding, Series A, 5.00%, 6/15/33	5,835,000	8,018,807
	Poway USD, GO, Capital Appreciation, School Facilities ID No. 2007-1, Election of 2008, Refunding, Series B, zero cpn., 8/01/46	45,000,000	20,177,550
	The Regents of the University of California Revenue,
	General, Refunding, Series AZ, 5.00%, 5/15/48	62,325,000	75,959,840
	Limited Project, Refunding, Series O, 5.00%, 5/15/48	20,000,000	24,307,200
	Limited Project, Refunding, Series O, 5.00%, 5/15/58	10,000,000	12,064,500
	Rialto USD, GO, Capital Appreciation, Election of 2010, Series A, AGMC Insured, zero cpn. to 8/01/26, 7.35% thereafter, 8/01/41	27,000,000	31,825,440
	Rio Hondo Community College District GO, Capital Appreciation, Election of 2004, Series C, zero cpn., 8/01/35	10,000,000	6,864,600
	Ripon USD,
	GO, Capital Appreciation, Election of 2012, Refunding, Series A, BAM Insured, 5.00%, 8/01/42	2,315,000	2,651,948
	GO, Capital Appreciation, Election of 2012, Series A, BAM Insured, Pre-Refunded, 5.00%, 8/01/42	705,000	807,077
	Riverside County Asset Leasing Corp. Leasehold Revenue,
	Riverside County Hospital Project, Capital Appreciation, Series A, NATL Insured, zero cpn., 6/01/23	14,160,000	13,518,694
	Riverside County Hospital Project, Capital Appreciation, Series A, NATL Insured, zero cpn., 6/01/24	13,005,000	12,207,533
	Riverside County SFMR,
	Capital Appreciation, Mortgage, Series A, GNMA Secured, ETM, zero cpn., 11/01/20	25,055,000	24,716,507
	Capital Appreciation, Mortgage, Series B, GNMA Secured, ETM, zero cpn., 6/01/23	26,160,000	24,834,734

  |  13

Franklin California Tax-Free Income Fund
Statement of Investments (unaudited)

		Principal Amount	Value
	Municipal Bonds (continued)
	California (continued)
	Riverside County Transportation Commission Sales Tax Revenue, Limited Tax, Series A, Pre-Refunded, 5.25%, 6/01/39	$11,000,000	$12,611,720
	Riverside County Transportation Commission Toll Revenue, senior lien, Series A, 5.75%, 6/01/48	10,000,000	11,135,300
	Riverside Electric Revenue, Refunding, Series A, 5.00%, 10/01/43	11,535,000	12,951,152
	Riverside Sewer Revenue, Refunding, Series A, 5.00%, 8/01/40	25,000,000	29,040,250
	RNR School Financing Authority Special Tax, CFD No. 92-1, Subordinate, Refunding, Series A, BAM Insured, 5.00%, 9/01/36	11,145,000	13,035,415
	Rocklin USD,
	CFD No. 3 GO, Subordinate, 4.00%, 9/15/49	11,825,000	13,098,552
	GO, Capital Appreciation, Election of 2002, NATL Insured, zero cpn., 8/01/25	8,160,000	7,495,450
	GO, Capital Appreciation, Election of 2002, NATL Insured, zero cpn., 8/01/26	8,695,000	7,781,590
	GO, Capital Appreciation, Election of 2002, NATL Insured, zero cpn., 8/01/27	9,080,000	7,919,667
	GO, Capital Appreciation, Election of 2002, NATL Insured, zero cpn., 8/01/28	16,615,000	14,089,852
	Rohnert Park Community Development Commission Tax Allocation Revenue, Redevelopment Project, Series R, NATL Insured, ETM, 5.00%, 8/01/37	1,380,000	1,421,842
	Roseville Electric System Revenue COP, AGMC Insured, 5.00%, 2/01/34	5,000	5,016
	Roseville Natural Gas Financing Authority Gas Revenue, 5.00%, 2/15/26	5,000,000	5,944,250
	Sacramento City USD, GO, Election of 2012, Measure Q, Series E, 4.00%, 5/01/47	20,000,000	21,539,400
	Sacramento County Airport System Revenue,
	Senior, 5.00%, 7/01/40	9,000,000	9,163,170
	Senior, Refunding, Series A, 5.00%, 7/01/41	10,000,000	11,844,000
	Subordinate, Refunding, Series B, 5.00%, 7/01/41	9,000,000	10,641,510
	Sacramento County Sanitation Districts Financing Authority Revenue, Sacramento Regional County Sanitation District, Refunding, Series A, 5.00%, 12/01/44	25,000,000	28,351,250
	Sacramento MUD Electric Revenue,
	Series G, 5.00%, 8/15/38	22,390,000	28,572,998
	Series G, 5.00%, 8/15/39	10,000,000	12,716,400
	Series G, 5.00%, 8/15/40	23,575,000	29,778,290
	Series G, 5.00%, 8/15/41	12,500,000	15,745,125
	Sacramento Transient Occupancy Tax Revenue,
	Convention Center Complex, Senior, Series A, 5.00%, 6/01/43	13,865,000	16,703,027
	Convention Center Complex, Senior, Series A, 5.00%, 6/01/48	12,000,000	14,331,480
	Convention Center Complex, Subordinate, Series C, 5.00%, 6/01/48	9,415,000	11,228,423
	Sacramento Water Revenue, 5.00%, 9/01/38	21,630,000	24,437,790
	Salida Area Public Facilities Financing Agency No. 88 Special Tax, Refunding, AGMC Insured, 5.00%, 9/01/30	5,435,000	5,770,666
	San Bernardino Community College District GO,
	Capital Appreciation, Election of 2008, Series B, zero cpn., 8/01/48	66,390,000	27,311,518
	San Bernardino and Riverside Counties, Election of 2008, Series A, 4.00%, 8/01/44	7,520,000	8,434,056
	San Bernardino and Riverside Counties, Election of 2008, Series A, 4.00%, 8/01/49	25,000,000	27,816,750
	San Bernardino County SFMR, Capital Appreciation, Series A, GNMA Secured, ETM, zero cpn., 5/01/22	7,710,000	6,943,318
	San Buenaventura Public Facilities Financing Authority Wastewater Revenue,
	Series C, 5.00%, 1/01/39	8,500,000	9,619,280
	Series C, 5.00%, 1/01/44	10,840,000	12,231,639
	San Buenaventura Public Facilities Financing Authority Water Revenue, Series C, 5.00%, 1/01/44	8,555,000	9,649,698
	San Diego Community College District GO, Capital Appreciation, Election of 2002, 6.00%, 8/01/33	26,880,000	35,023,027
	San Diego County COP, The Salk Institute for Biological Studies, Pre-Refunded, 5.125%, 7/01/40	15,000,000	15,303,600

  |  14

Franklin California Tax-Free Income Fund
Statement of Investments (unaudited)

		Principal Amount	Value
	Municipal Bonds (continued)
	California (continued)
	San Diego County Regional Airport Authority Revenue,
	Consolidated Rental Car Facilities, Series A, 5.00%, 7/01/44	$5,645,000	$6,452,574
	Subordinate, Refunding, Series A, 5.00%, 7/01/27	11,565,000	11,800,695
	Subordinate, Refunding, Series B, 4.00%, 7/01/44	3,000,000	3,328,770
	Subordinate, Refunding, Series B, 5.00%, 7/01/44	7,500,000	9,308,925
	Subordinate, Refunding, Series B, 5.00%, 7/01/49	5,000,000	6,038,500
	San Diego County Regional Airport Revenue, Subordinate, Governmental, Refunding, Series A, 5.00%, 7/01/49	6,500,000	8,016,775
	San Diego County Regional Transportation Commission Sales Tax Revenue,
	Refunding, Series A, 5.00%, 4/01/48	25,000,000	29,414,750
	Series A, Pre-Refunded, 5.00%, 4/01/44	54,915,000	64,345,004
	Series A, Pre-Refunded, 5.00%, 4/01/48	20,000,000	23,434,400
	San Diego USD,
	GO, Capital Appreciation, Election of 1998, Series A, NATL Insured, zero cpn., 7/01/21	12,160,000	11,951,456
	GO, Capital Appreciation, Election of 1998, Series A, NATL Insured, zero cpn., 7/01/22	8,440,000	8,189,501
	GO, Capital Appreciation, Election of 1998, Series A, NATL Insured, zero cpn., 7/01/23	11,120,000	10,636,725
	GO, Capital Appreciation, Election of 2008, Series A, Pre-Refunded, 6.00%, 7/01/33	104,505,000	127,774,083
	GO, Capital Appreciation, Election of 2008, Series C, zero cpn. to 6/30/30, 6.625% thereafter, 7/01/48	29,840,000	29,450,290
	GO, Dedicated Unlimited Ad Valorem Property Tax, Capital Appreciation, Election of 2008, Series E, zero cpn. to 7/01/32, 5.375% thereafter, 7/01/47	74,270,000	62,599,212
	GO, Dedicated Unlimited Ad Valorem Property Tax, Capital Appreciation, Refunding, Series R-2, zero cpn. to 6/30/30, 6.625% thereafter, 7/01/40	79,500,000	82,932,015
	GO, Dedicated Unlimited Ad Valorem Property Tax, Election of 2012, Series F, 5.00%, 7/01/40	56,510,000	65,651,058
	GO, Dedicated Unlimited Ad Valorem Property Tax, Election of 2012, Series F, 5.00%, 7/01/45	34,370,000	39,640,983
	GO, Dedicated Unlimited Ad Valorem Property Tax, Election of 2012, Series G, 5.00%, 7/01/40	13,000,000	15,102,880
	GO, Election of 2012, Series L, 4.00%, 7/01/49	47,000,000	53,411,270
	San Francisco City and County Airport Commission International Airport Revenue,
	Refunding, Second Series, Series A, 5.00%, 5/01/42	20,910,000	24,683,000
	Refunding, Second Series, Series A, 5.00%, 5/01/47	49,090,000	57,536,916
	Refunding, Second Series, Series A, 5.00%, 5/01/49	25,000,000	30,023,500
	Refunding, Second Series, Series B, 5.00%, 5/01/47	70,725,000	85,265,353
	Refunding, Second Series, Series D, 5.00%, 5/01/48	117,910,000	139,940,304
	Refunding, Second Series, Series D, 5.25%, 5/01/48	120,000,000	145,164,000
	Refunding, Second Series, Series E, 5.00%, 5/01/48	44,650,000	54,075,168
	Second Series, Series B, 5.00%, 5/01/44	31,000,000	35,267,150
	Second Series, Series B, 5.00%, 5/01/46	12,500,000	14,425,125
	Second Series, Series E, 5.00%, 5/01/45	30,000,000	36,199,200
	San Francisco City and County MFHR, Eastern Park Apartments, Series J, 2.55%, 7/01/39	56,506,000	56,412,765
	San Francisco City and County Public Utilities Commission Water Revenue,
	Sub-Series A, Pre-Refunded, 5.00%, 11/01/36	23,490,000	25,714,738
	Sub-Series A, Pre-Refunded, 5.00%, 11/01/41	5,800,000	6,232,274
	Sub-Series A, Pre-Refunded, 5.00%, 11/01/43	71,735,000	78,529,022
	San Francisco City and County RDA Successor Agency Tax Allocation, Transbay Infrastructure Projects, third lien, Series B, AGMC Insured, 5.00%, 8/01/46	10,000,000	11,859,400

  |  15

Franklin California Tax-Free Income Fund
Statement of Investments (unaudited)

		Principal Amount	Value
	Municipal Bonds (continued)
	California (continued)
	San Gabriel USD,
	GO, Los Angeles County, Capital Appreciation, Election of 2002, Series A, AGMC Insured, zero cpn., 8/01/26	$3,530,000	$3,169,516
	GO, Los Angeles County, Capital Appreciation, Election of 2002, Series A, AGMC Insured, zero cpn., 2/01/27	1,850,000	1,643,503
	San Jacinto USD,
	COP, Refunding, AGMC Insured, 5.125%, 9/01/30	4,375,000	4,495,925
	COP, Refunding, AGMC Insured, 5.375%, 9/01/40	12,000,000	12,351,360
	San Joaquin Hills Transportation Corridor Agency Toll Road Revenue,
	Capital Appreciation, Refunding, Series A, NATL Insured, zero cpn., 1/15/26	13,155,000	11,428,012
	Capital Appreciation, Refunding, Series A, zero cpn. to 7/15/21, 5.65% thereafter, 1/15/37	104,745,000	125,239,407
	Capital Appreciation, Refunding, Series A, zero cpn. to 7/15/21, 5.70% thereafter, 1/15/38	140,340,000	168,190,473
	Capital Appreciation, Refunding, Series A, zero cpn. to 7/15/21, 5.75% thereafter, 1/15/40	158,655,000	193,800,256
	Capital Appreciation, Refunding, Series A, zero cpn. to 7/15/21, 5.75% thereafter, 1/15/41	141,024,000	173,349,521
	Capital Appreciation, Refunding, Series A, zero cpn. to 7/15/21, 5.75% thereafter, 1/15/42	141,024,000	174,092,718
	senior lien, Capital Appreciation, ETM, zero cpn., 1/01/25	5,700,000	5,372,022
	senior lien, Capital Appreciation, ETM, zero cpn., 1/01/28	33,545,000	29,814,796
	senior lien, Capital Appreciation, ETM, zero cpn., 1/01/29	37,050,000	31,874,115
	senior lien, Refunding, Series A, 5.00%, 1/15/44	125,000,000	142,001,250
	senior lien, Refunding, Series A, 5.00%, 1/15/50	430,000,000	486,355,800
	San Jose Airport Revenue,
	Refunding, Series A, 5.00%, 3/01/41	10,000,000	11,794,600
	Refunding, Series A, 5.00%, 3/01/47	20,000,000	23,399,400
	Refunding, Series B, 5.00%, 3/01/47	10,000,000	11,976,000
	San Jose Financing Authority Lease Revenue, Civic Center Project, Refunding, Series A, AMBAC Insured, 5.00%, 6/01/39	20,885,000	20,943,478
	San Jose Special Hotel Tax Revenue,
	Convention Center Expansion and Renovation Project, 6.50%, 5/01/36	10,000,000	10,684,800
	Convention Center Expansion and Renovation Project, 6.50%, 5/01/42	10,000,000	10,686,100
	San Jose USD,
	COP, Capital Appreciation, AGMC Insured, ETM, zero cpn., 1/01/27	7,105,000	6,399,829
	COP, Capital Appreciation, AGMC Insured, ETM, zero cpn., 1/01/29	7,105,000	6,058,149
	San Juan USD,
	GO, Capital Appreciation, Election of 1998, Series B, NATL Insured, zero cpn., 8/01/26	15,825,000	13,364,054
	GO, Capital Appreciation, Election of 1998, Series B, NATL Insured, zero cpn., 8/01/27	18,605,000	16,312,864
	GO, Capital Appreciation, Election of 1998, Series B, NATL Insured, zero cpn., 8/01/28	19,470,000	16,609,468
	San Luis Obispo County Financing Authority Revenue, Nacimiento Water Project, Refunding, Series A, BAM Insured, 5.00%, 9/01/37	10,000,000	11,678,700
	San Marcos PFAR, Series A, ETM, 6.25%, 9/02/22	15,000,000	17,111,700
	San Marcos School Financing Authority Lease Revenue, AGMC Insured, Pre-Refunded, 5.00%, 8/15/40	15,635,000	16,031,191
	San Marino USD, GO, Los Angeles County, Capital Appreciation, Election of 2000, Series A, NATL Insured, zero cpn., 7/01/25	6,080,000	5,599,558
	San Mateo Foster City PFA Wastewater Revenue, Clean Water Program, 5.00%, 8/01/49	29,000,000	36,042,940
	San Mateo UHSD,
	COP, Phase I Projects, Capital Appreciation, Series B, AMBAC Insured, Pre-Refunded, 5.00%, 12/15/43	11,535,000	13,801,051
	GO, Capital Appreciation, Election of 2000, Series B, NATL Insured, zero cpn., 9/01/22	5,000,000	4,839,250

  |  16

Franklin California Tax-Free Income Fund
Statement of Investments (unaudited)

		Principal Amount	Value
	Municipal Bonds (continued)
	California (continued)
	Sanger Financing Authority Wastewater Revenue,
	Fresno County, Subordinate, AGMC Insured, 5.00%, 6/15/35	$2,360,000	$2,617,806
	Fresno County, Subordinate, AGMC Insured, 5.00%, 6/15/43	3,225,000	3,553,950
	Sanger Financing Authority Water Revenue, Fresno County, AGMC Insured, 5.00%, 6/15/43	2,930,000	3,228,860
	Sanger USD, GO, Fresno County, Election of 2016, Series A, BAM Insured, 4.00%, 8/01/41	10,000,000	11,054,900
	Santa Ana CRDA Tax Allocation,
	Merged Project Area, Series A, Pre-Refunded, 6.25%, 9/01/24	7,005,000	7,433,426
	Merged Project Area, Series A, Pre-Refunded, 6.75%, 9/01/28	13,500,000	14,401,800
	Santa Ana USD, COP, Financing Project, Capital Appreciation, AGMC Insured, zero cpn., 4/01/24	14,245,000	12,187,880
	Santa Barbara Housing Authority Revenue, Refunding and Acquisition, 6.25%, 11/15/20	540,000	550,924
	Santa Cruz County RDA Tax Allocation, Refunding, Series A, BAM Insured, 5.00%, 9/01/35	20,000,000	23,698,000
	Santa Maria Joint UHSD, GO, Santa Barbara and San Luis Obispo Counties, Election of 2004, 4.00%, 8/01/37	14,230,000	15,354,455
	Santa Paula Utility Authority Wastewater Enterprise Revenue,
	Series A, 5.00%, 2/01/45	16,495,000	18,927,353
	Series A, 5.00%, 2/01/50	21,050,000	24,026,680
	Saugus/Hart School Facilities Financing Authority Lease Revenue,
	Series A, AGMC Insured, 5.00%, 9/01/35	2,000,000	2,046,240
	Series A, AGMC Insured, 5.00%, 9/01/40	1,500,000	1,534,050
	School Facilities Financing Authority Revenue, Capital Appreciation, Grant Joint UHSD, Series A, AGMC Insured, zero cpn., 8/01/42	49,000,000	23,877,210
	Semitropic ID of Semitropic Water Storage District Revenue, second lien, Refunding, Series A, AGMC Insured, 5.00%, 12/01/45	10,000,000	11,553,100
	Sonoma CDA Tax Allocation, Redevelopment Project, 7.125%, 12/01/36	10,775,000	11,966,284
	Southern California Public Power Authority Gas Project Revenue, Project No. 1, Series A, 5.00%, 11/01/33	17,500,000	22,835,400
	Southern California Water Replenishment District Revenue COP, Pre-Refunded, 5.00%, 8/01/41	22,870,000	24,361,581
	Southern Mono Health Care District GO,
	Capital Appreciation, Election of 2001, Series A, NATL Insured, zero cpn., 8/01/28	2,340,000	1,942,691
	Capital Appreciation, Election of 2001, Series A, NATL Insured, zero cpn., 8/01/29	2,440,000	1,959,613
	Capital Appreciation, Election of 2001, Series A, NATL Insured, zero cpn., 8/01/30	2,550,000	1,975,970
	Capital Appreciation, Election of 2001, Series A, NATL Insured, zero cpn., 8/01/31	2,660,000	1,988,403
	Southwestern Community College District GO, Election of 2008, Series D, 5.00%, 8/01/44	10,000,000	11,492,400
	Stanislaus USD, GO, Election of 2008, Series B, AGMC Insured, Pre-Refunded, 5.125%, 8/01/41	3,400,000	3,614,540
	Sulphur Springs USD,
	COP, AGMC Insured, ETM, 6.50%, 12/01/37	2,150,000	2,436,918
	COP, Refunding, AGMC Insured, 6.50%, 12/01/37	11,390,000	14,309,485
	Temple City USD, GO, Election of 2012, Series A, Pre-Refunded, 5.00%, 8/01/43	10,000,000	11,447,900
	Truckee PFA Tax Allocation Revenue,
	Truckee Redevelopment Project Loan, Series A, AGMC Insured, 5.00%, 9/01/30	1,255,000	1,285,534
	Truckee Redevelopment Project Loan, Series A, AGMC Insured, 5.375%, 9/01/37	5,000,000	5,134,600
	Tulare County Board of Education COP,
	Capital Improvement Projects, BAM Insured, Pre-Refunded, 5.375%, 5/01/33	3,185,000	3,653,450
	Capital Improvement Projects, BAM Insured, Pre-Refunded, 5.50%, 5/01/38	8,305,000	9,560,467
	Capital Improvement Projects, BAM Insured, Pre-Refunded, 5.50%, 5/01/43	10,855,000	12,495,950
	Tustin CRDA Tax Allocation,
	Orange County, Housing, AGMC Insured, Pre-Refunded, 5.00%, 9/01/30	2,125,000	2,182,694
	Orange County, Housing, AGMC Insured, Pre-Refunded, 5.25%, 9/01/39	3,250,000	3,343,600

  |  17

Franklin California Tax-Free Income Fund
Statement of Investments (unaudited)

		Principal Amount	Value
	Municipal Bonds (continued)
	California (continued)
	Union Elementary School District GO,
	Santa Clara County, Capital Appreciation, Election of 1999, Series A, NATL Insured, zero cpn., 9/01/24	$2,000,000	$1,871,840
	Santa Clara County, Capital Appreciation, Election of 1999, Series B, NATL Insured, zero cpn., 9/01/25	5,500,000	5,047,130
	Santa Clara County, Capital Appreciation, Election of 1999, Series B, NATL Insured, zero cpn., 9/01/26	5,850,000	5,243,414
	University of California Regents Medical Center Pooled Revenue,
	Refunding, Series J, 5.00%, 5/15/48	75,000,000	82,876,500
	Refunding, Series L, 5.00%, 5/15/47	49,575,000	57,449,989
	University of California Revenue,
	Limited Project, Refunding, Series I, 5.00%, 5/15/40	22,990,000	26,759,440
	Limited Project, Refunding, Series I, 5.00%, 5/15/50	25,420,000	29,217,748
	Limited Project, Refunding, Series K, 4.00%, 5/15/46	19,850,000	21,768,899
	Limited Project, Refunding, Series O, 5.00%, 5/15/39	14,400,000	17,853,120
	Limited Project, Refunding, Series O, 5.00%, 5/15/43	30,120,000	36,848,507
	Limited Project, Series M, 5.00%, 5/15/37	15,410,000	18,934,575
	Refunding, Series AR, 5.00%, 5/15/41	13,760,000	16,353,898
	Upland COP,
	San Antonio Community Hospital, Pre-Refunded, 6.50%, 1/01/41	34,130,000	36,000,324
	San Antonio Regional Hospital, Refunding, 5.00%, 1/01/47	14,400,000	16,498,512
	Upland USD, GO, Capital Appreciation, Election of 2008, Series C, zero cpn., 8/01/45	62,900,000	27,802,429
	Val Verde USD,
	GO, Riverside County, Convertible Capital Appreciation, Election of 2008, Refunding, Series B, AGMC Insured, zero cpn. to 7/31/22, 6.125% thereafter, 8/01/34	1,000,000	1,238,240
	GO, Riverside County, Election of 2012, Refunding, Series B, BAM Insured, 5.00%, 8/01/44	15,000,000	17,418,450
	Vallejo PFAR, Local Agency, Hiddenbrooke ID, Refunding, Series A, 5.80%, 9/01/31	3,620,000	3,630,317
	Ventura County Revenue, TRAN, 5.00%, 7/01/20	43,000,000	43,859,570
	Vista RDA Successor Agency Tax Allocation, Vista Redevelopment Project, Refunding, Series B-1, AGMC Insured, 5.00%, 9/01/37	3,020,000	3,505,827
	Vista USD,
	GO, San Diego County, Capital Appreciation, Election of 2002, Series A, AGMC Insured, zero cpn., 8/01/26	7,150,000	6,457,594
	GO, San Diego County, Capital Appreciation, Election of 2002, Series A, AGMC Insured, zero cpn., 2/01/27	4,795,000	4,256,809
	Washington Township Health Care District GO, Series B, 5.00%, 8/01/45	15,000,000	17,426,100
	Washington Township Health Care District Revenue, Series A, 5.50%, 7/01/38	11,000,000	11,212,190
	West Hills Community College District School Facilities ID No. 3 GO, Election of 2008, Series B, AGMC Insured, Pre-Refunded, 6.50%, 8/01/41	4,000,000	4,350,120
	West Sacramento Area Flood Control Agency Assessment Revenue,
	5.25%, 9/01/41	9,030,000	9,611,351
	AGMC Insured, 5.00%, 9/01/40	3,000,000	3,487,650
	AGMC Insured, 5.00%, 9/01/45	7,500,000	8,659,650
	West Sacramento Financing Authority Special Tax Revenue, Series A, XLCA Insured, 5.00%, 9/01/34	4,940,000	6,458,951
	Western Placer USD, COP, Refinancing Project, AGMC Insured, 5.20%, 11/01/41	1,000,000	1,077,200
	Western Riverside Water and Wastewater Financing Authority Revenue,
	Eastern Municipal Water District ID, Assured Guaranty, 5.50%, 9/01/34	1,750,000	1,755,915
	Eastern Municipal Water District ID, Assured Guaranty, 5.625%, 9/01/39	2,500,000	2,508,650

  |  18

Franklin California Tax-Free Income Fund
Statement of Investments (unaudited)

		Principal Amount	Value
	Municipal Bonds (continued)
	California (continued)
	Wiseburn School District GO,
	Los Angeles County, Election of 2010, Series A, AGMC Insured, Pre-Refunded, 5.75%, 8/01/40	$9,215,000	$9,473,573
	Los Angeles County, Election of 2010, Series B, AGMC Insured, Pre-Refunded, 5.625%, 5/01/41	10,000,000	10,741,800
			15,658,505,616
	U.S. Territories 0.9%
	Puerto Rico 0.9%
	Children’s Trust Fund Tobacco Settlement Revenue,
	Asset-Backed, Refunding, 5.50%, 5/15/39	6,210,000	6,324,140
	Asset-Backed, Refunding, 5.625%, 5/15/43	16,000,000	16,294,080
a	Puerto Rico Commonwealth Infrastructure Financing Authority Special Tax Revenue, 5.00%, 7/01/46	9,475,000	1,954,219
a	Puerto Rico Electric Power Authority Power Revenue,
	Series A-RSA-1, 5.00%, 7/01/29	20,000,000	15,200,000
	Series A-RSA-1, 7.00%, 7/01/33	50,000,000	39,250,000
	Series A-RSA-1, 5.00%, 7/01/42	24,000,000	18,240,000
	Series WW-RSA-1, 5.00%, 7/01/28	12,030,000	9,142,800
	Series WW-RSA-1, 5.25%, 7/01/33	32,250,000	24,590,625
	Series XX-RSA-1, 5.25%, 7/01/40	14,000,000	10,675,000
	Puerto Rico Industrial Tourist Educational Medical and Environmental Control Facilities Financing Authority Revenue, Cogeneration Facility, AES Puerto Rico Project, 6.625%, 6/01/26	5,800,000	5,952,250
			147,623,114
	Total Municipal Bonds before Short Term Investments (Cost $13,666,902,051)		15,806,128,730
	Short Term Investments 3.6%
	Municipal Bonds 3.6%
	California 3.6%
b	California State GO,
	Kindergarten, Refunding, Series A2, LOC State Street Bank & Trust Co., Daily VRDN and Put, 1.35%, 5/01/34	4,400,000	4,400,000
	Kindergarten - University Public Education Facilities, Refunding, Series A1, LOC Citibank, Daily VRDN and Put, 1.37%, 5/01/34	6,800,000	6,800,000
	Series A-3, LOC Bank of Montreal, Daily VRDN and Put, 1.36%, 5/01/33	3,200,000	3,200,000
b	California State Municipal Finance Authority Revenue, Chevron USA Inc. Project, Recovery Zone Facility Bonds, Series B, Daily VRDN and Put, 1.25%, 11/01/35	20,040,000	20,040,000
b	California Statewide CDA Revenue, Rady Children’s Hospital-San Diego, Series B, LOC Wells Fargo Bank, Daily VRDN and Put, 1.29%, 8/15/47	15,535,000	15,535,000
b	Eastern Municipal Water District Water and Wastewater Revenue, Refunding, Series A, SPA Bank of America, Daily VRDN and Put, 1.44%, 7/01/46	50,295,000	50,295,000
b	Irvine 1915 Act Special Assessment,
	Limited Obligation Improvement, AD No. 94-13, LOC State Street Bank & Trust Co., Daily VRDN and Put, 1.50%, 9/02/22	9,000,000	9,000,000
	Limited Obligation Improvement, AD No. 97-16, LOC State Street Bank & Trust Co., Daily VRDN and Put, 1.50%, 9/02/22	11,800,000	11,800,000
b	Irvine Ranch Water District GO, ID, Consolidated, Series B, LOC Bank of America, Daily VRDN and Put, 1.36%, 10/01/41	36,745,000	36,745,000

  |  19

Franklin California Tax-Free Income Fund
Statement of Investments (unaudited)

		Principal Amount	Value
	Short Term Investments (continued)
	Municipal Bonds (continued)
	California (continued)
b	Los Angeles Department of Water and Power Revenue,
	Power System, Refunding, Series A, Subseries A-4, SPA Bank of America, Daily VRDN and Put, 1.44%, 7/01/35	$30,700,000	$30,700,000
	Power System, Refunding, Series B, Subseries B-6, SPA TD Bank National Association, Daily VRDN and Put, 1.44%, 7/01/34	14,800,000	14,800,000
b	The Metropolitan Water District of Southern California Water Revenue,
	Refunding, Series A, SPA Toronto Dominion Bank, Daily VRDN and Put, 1.51%, 7/01/37	94,360,000	94,360,000
	Refunding, Series B-3, SPA Citibank, Daily VRDN and Put, 1.44%, 7/01/35	7,000,000	7,000,000
	SIFMA Index Mode, Subordinate, Refunding, Series E, Weekly VRDN and Put, 1.55%, 7/31/20	20,000,000	19,997,200
	Special, Refunding, Series A-1, SPA Toronto Dominion Bank, Daily VRDN and put, 1.51%, 7/01/37	72,015,000	72,015,000
b	Santa Clara Valley Transportation Authority Sales Tax Revenue, 2000 Measure A, Refunding, Series D, SPA TD Bank National Association, Daily VRDN and Put, 1.35%, 4/01/36	11,500,000	11,500,000
b	Southern California Public Power Authority Revenue, Magnolia Power Project, Refunding, Series A, LOC US Bank National Association, Daily VRDN and Put, 1.37%, 7/01/36	43,350,000	43,350,000
b	University of California Revenue,
	General, Refunding, Series AL-1, Daily VRDN and Put, 1.40%, 5/15/48	52,225,000	52,225,000
	General, Refunding, Series AL-2, Daily VRDN and Put, 1.42%, 5/15/48	34,125,000	34,125,000
	General, Refunding, Series AL-3, Daily VRDN and Put, 1.42%, 5/15/48	55,655,000	55,655,000
	Total Short Term Investments (Cost $593,545,000)		593,542,200
	Total Investments (Cost $14,260,447,051) 99.4%		16,399,670,930
	Other Assets, less Liabilities 0.6%		105,444,183
	Net Assets 100.0%		$16,505,115,113

See Abbreviations on page 23.

^aDefaulted security or security for which income has been deemed uncollectible.

^bVariable rate demand notes (VRDNs) are obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. Unless otherwise noted, the coupon rate is determined based on factors including supply and demand, underlying credit, tax treatment, and current short term rates. The coupon rate shown represents the rate at period end.

  |  20

Franklin California Tax-Free Income Fund

Notes to Statement of Investments (unaudited)

1.  ORGANIZATION

Franklin California Tax-Free Income Fund (Fund) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP). 

2.  FINANCIAL INSTRUMENT VALUATION

The Fund’s investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Fund calculates the net asset value (NAV) per share each business day as of 4 p.m. Eastern time or the regularly scheduled close of the New York Stock Exchange (NYSE), whichever is earlier. Under compliance policies and procedures approved by the Fund’s Board of Trustees (the Board), the Fund’s administrator has responsibility for oversight of valuation, including leading the cross-functional Valuation Committee (VC). The Fund may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

Debt securities generally trade in the over-the-counter market rather than on a securities exchange. The Fund’s pricing services use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the pricing services may utilize a market-based approach through which quotes from market makers are used to determine fair value. In instances where sufficient market activity may not exist or is limited, the pricing services also utilize proprietary valuation models which may consider market characteristics such as benchmark yield curves, credit spreads, estimated default rates, anticipated market interest rate volatility, coupon rates, anticipated timing of principal repayments, underlying collateral, and other unique security features in order to estimate the relevant cash flows, which are then discounted to calculate the fair value.

The Fund has procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the Fund primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. 

3.  CONCENTRATION OF RISK

The Fund invests a large percentage of its total assets in obligations of issuers within California and U.S. territories. Such concentration may subject the Fund to risks associated with industrial or regional matters, and economic, political or legal developments occurring within California and U.S. territories. Investing in Puerto Rico securities may expose the Fund to heightened risks due to recent adverse economic and market changes, credit downgrades and ongoing restructuring discussions. In addition, investments in these securities are sensitive to interest rate changes and credit risk of the issuer and may subject the Fund to increased market volatility. The market for these investments may be limited, which may make them difficult to buy or sell. 

  |  21

Franklin California Tax-Free Income Fund
Notes to Statements of Investments (unaudited)

4.  FAIR VALUE MEASUREMENTS

The Fund follows a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund’s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Fund’s financial instruments and are summarized in the following fair value hierarchy:

•	Level 1 – quoted prices in active markets for identical financial instruments
•	Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)
•	Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of financial instruments)

The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.

At December 31, 2019, all of the Fund’s investments in financial instruments carried at fair value were valued using Level 2 inputs. 

5.  SUBSEQUENT EVENTS

The Fund has evaluated subsequent events through the issuance of the Statement of Investments and determined that no events have occurred that require disclosure. 

  |  22

Franklin California Tax-Free Income Fund

Notes to Statements of Investments (unaudited)

Abbreviations

Selected Portfolio

1915 Act	Improvement Bond Act of 1915
ABAG	The Association of Bay Area Governments
AD	Assessment District
AGMC	Assured Guaranty Municipal Corp.
AMBAC	American Municipal Bond Assurance Corp.
BAM	Build America Mutual Assurance Co.
CDA	Community Development Authority/Agency
CFD	Community Facilities District
COP	Certificate of Participation
CRDA	Community Redevelopment Authority/Agency
ETM	Escrow to Maturity
FGIC	Financial Guaranty Insurance Co.
FHA	Federal Housing Authority/Agency
FNMA	Federal National Mortgage Association
GNMA	Government National Mortgage Association
GO	General Obligation
HFA	Housing Finance Authority/Agency
ID	Improvement District
IDR	Industrial Development Revenue
LOC	Letter of Credit

MF	Multi-Family
MFHR	Multi-Family Housing Revenue
MTA	Metropolitan Transit Authority
MUD	Municipal Utility District
NATL	National Public Financial Guarantee Corp.
NATL RE	National Public Financial Guarantee Corp. Reinsured
PCFA	Pollution Control Financing Authority
PFA	Public Financing Authority
PFAR	Public Financing Authority Revenue
RDA	Redevelopment Agency/Authority
RSA	Restructuring Support Agreement
SFMR	Single Family Mortgage Revenue
SIFMA	Securities Industry and Financial Markets Association
SPA	Standby Purchase Agreement
SRF	State Revolving Fund
TRAN	Tax and Revenue Anticipation Note
UHSD	Unified/Union High School District
USD	Unified/Union School District
XLCA	XL Capital Assurance

 

For additional information on the Fund’s significant accounting policies, please refer to the Fund’s most recent semiannual or annual shareholder report.

  |  23