Cal. Education Code § 8237

(a) In contract transfer situations in programs funded pursuant to this chapter, the Superintendent of Public Instruction may grant a certificate of operation to preschool facilities pursuant to this section. (b) For purposes of maintaining continuity of services to children, the superintendent may grant a certificate of operation to any preschool facility that meets all of the following conditions: (1) The superintendent, or the superintendent’s designee, has visited the facility and verified, in writing, to the State Department of Social Services licensing agency that the facility has no deficiencies at the time of granting the certificate of operation that would endanger the physical health, mental health, safety, or welfare of the children. (2) Without a certificate of operation in lieu of a license from the State Department of Social Services, the facility would be ineligible to receive, as applicable, state or federal funds. (c) A facility issued a certificate of operation pursuant to this section shall be deemed to be operating under licensing standards for childcare and development facilities specified by Chapters 3.4 (commencing with Section 1596.70), 3.5 (commencing with Section 1596.90), and 3.6 (commencing with Section 1597.30) of Division 2 of the Health and Safety Code and by Title 22 of the California Code of Regulations for the term specified on the certificate. (d) A facility granted a certificate of operation shall submit a completed license application to the State Department of Social Services within 15 working days of the issuance of the certificate of operation. Failure to meet this requirement will result in the cancellation of the certificate of operation. The certificate of operation shall expire upon the issuance or denial of a license by the State Department of Social Services.