(a) The State Allocation Board shall establish regulations for the allocation of funds for capital outlay and for the reimbursement of initial utility installation costs for purposes of this chapter. The department shall establish qualifications for determining the eligibility of agencies providing child care and development services, including preschool and extended day care service, to apply for these funds.
(b) Notwithstanding any other provision of law, priority in funding of capital outlay grants or relocatables from funds administered pursuant to Section 10307 and under this chapter, shall be determined in the following order:
(1) Programs experiencing emergencies as defined by the department and the State Allocation Board.
(2) Expansion of child care services.