2005 California Revenue and Taxation Code Sections 43101-43102 Article 2. Registration and Security

43101.  Every person, as defined in Section 25118 of the Health and
Safety Code, who is subject to the fees specified in subdivision (a)
of Section 25173.6 of the Health and Safety Code, subdivision (a) of
Section 25174 of the Health and Safety Code, Section 105190 of the
Health and Safety Code, or Section 25205.14 of the Health and Safety
Code shall register with the board on forms provided by the board.
43102.  The board, whenever it deems it necessary to ensure
compliance with this part, may require any person subject to this
part to place with it any security that the board determines to be
reasonable, taking into account the circumstances of that person.
Any security in the form of cash, government bonds, or insured
deposits in banks or savings and loan institutions shall be held by
the board in trust to be used solely in the manner provided by this
section.  The board may sell the security at public auction if it
becomes necessary to do so in order to recover any tax or any amount
required to be collected, including any interest or penalty due.
Notice of the sale shall be served upon the person who placed the
security personally or by mail.  If service is made by mail, service
shall be addressed to the person at his or her address as it appears
in the records of the board.  Service shall be made at least 30 days
prior to the sale in the case of personal service, and at least 40
days prior to the sale in the case of service by mail.  Upon any
sale, any surplus above the amounts due shall be returned to the
person who placed the security.