California Revenue & Taxation Code
Cal. Rev. & Tax. Code § 45607
The amounts required to be paid by any person under this part together with interest and penalties shall be satisfied first in any of the following cases:
# (a)
Whenever the person is insolvent.
# (b)
Whenever the person makes a voluntary assignment of his or her assets.
# (c)
Whenever the estate of the person in the hands of executors, administrators, or heirs is insufficient to pay all the debts due from the deceased.
# (d)
Whenever the estate and effects of an absconding, concealed, or absent person required to pay any amount under this part are levied upon by process of law.
This section does not give the state a preference over a lien or security interest which was recorded or perfected prior to the time when the state records or files its lien, as provided in Section 7171 of the Government Code.
The preference given to the state by this section is subordinate to the preferences given to claims for personal services by Sections 1204 and 1206 of the Code of Civil Procedure.
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