Box 17 on W2 is blank, should I file State return?

My daughter (student) got a W2 while working at non profit organization. The box 17 is blank on her W2 and the total money she made is less than California standard deduction. Should she file California return?

 

I would assume "not needed" but when preparing her Federal tax return, it offered to continue filing California return. After completing the state return it clearly shows her taxable income is 0 (W2 box 16 minus standard deduction are negative) but it is still asking me to continue filing the return and pay california state return filing fee instead of telling there is no need to file.