the implication was misleading, yes. the implication being that California has database of its citizens' genetic data. when the reality is that CA has a _physical sample_ of blood.
as blood contains white blood cells, and these cells tend to contain DNA, yes a collection of identified blood samples is also a collection of DNA (molecules).
A DNA collection doesn't need to have been sequenced to qualify as a DNA collection.
So yes a collection of blood sample is technically also a collection of DNA sequences, but it has an expiry date (a short one compared to the lifespan of an individual!) contrary to a DNA sequence that's pure data.