Have had 2 kids in CA. Can confirm[1]. They even write you a pathetic "don't go" letter when you file the paperwork to destroy the records. They allow all sorts of organizations to use the data[2].
It's established fact, albeit not very well known. It's not all births, as implied. Only hospital births.
The worst part isn't that they take it, it's that it's not disclosed to you, nor can you opt out[]. You can have the sample destroyed after-the-fact by writing a letter to the correct authority. We did so and a few months later got supposed confirmation of destruction and supposed confirmation that the sample was not used in any way for any purpose. Of course it's far better to be able to refuse collection than to trust that your destruction request was properly followed.
It would be acceptable (welcome, even) if the samples were properly anonymized. Clearly they are not, since you can request destruction of yours.
I mean, you can probably absolutely refuse while you are at the hospital. What are they gonna do, call in the sheriff?