I believe that if you have a fund in which 50% or more of the items are generating interest and dividends that would be tax-free to an individual, that the interest and dividends as a whole are tax-free in California.
See R&TC §17145
But, of course, if you have multiple income sources within the HSA, then you will have to draw up a list and calculate the taxable and tax-free items, and enter the net amount in the CA state interview.
Also note that CA taxes all capital gains as ordinary income, so you don't have to worry about short-term and long-term gains. Just lump them all together and enter them in the CA state interview.
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