TF *SA
     NYT *SA
     TF1 *SA
     TF2 *SA
     MUN *SA
     CAT *SA


                            SHARE CLASS REDESIGNATION
                            EFFECTIVE JANUARY 1, 1999

                           Class A - Formerly Class I
                           Class C - Formerly Class II



                       SUPPLEMENT DATED JANUARY 1, 1999
                TO THE STATEMENTS OF ADDITIONAL INFORMATION OF

                       FRANKLIN NEW YORK TAX-FREE TRUST
                              DATED MAY 1, 1998

                           FRANKLIN TAX-FREE TRUST
(TF1 - ARIZONA, FLORIDA, INSURED, MASSACHUSETTS, MICHIGAN, MINNESOTA AND OHIO
                        INSURED TAX-FREE INCOME FUNDS)
  (TF2 - ALABAMA, FLORIDA, GEORGIA, KENTUCKY, LOUISIANA, MARYLAND, MISSOURI,
          NORTH CAROLINA, TEXAS AND VIRGINIA TAX-FREE INCOME FUNDS)
                              DATED JULY 1, 1998

                     FRANKLIN MUNICIPAL SECURITIES TRUST
                            DATED OCTOBER 1, 1998

                      FRANKLIN CALIFORNIA TAX-FREE TRUST
                            DATED NOVEMBER 1, 1998

The Statement of Additional Information is amended as follows:

 I.  As of January 1, 1999, Class I shares are designated Class A and Class
     II shares are designated Class C. All references in the Statement of
     Additional Information to Class I shares are replaced with Class A, and
     all references to Class II shares are replaced with Class C.

 II. Under "Miscellaneous Information," the following is added:

     The Information Services & Technology division of Resources established
     a Year 2000 Project Team in 1996. This team has already begun making
     necessary software changes to help the computer systems that service the
     fund and its shareholders to be Year 2000 compliant. After completing
     these modifications, comprehensive tests are conducted in one of
     Resources' U.S. test labs to verify their effectiveness. Resources
     continues to seek reasonable assurances from all major hardware,
     software or data-services suppliers that they will be Year 2000
     compliant on a timely basis. Resources is also beginning to develop a
     contingency plan, including identification of those mission critical
     systems for which it is practical to develop a contingency plan.
     However, in an operation as complex and geographically distributed as
     Resources' business, the alternatives to use of normal systems,
     especially mission critical systems, or supplies of electricity or long
     distance voice and data lines are limited.


              Please keep this supplement for future reference.