Great question Lisa!
Since your daughter is currently 7, she still needs to be in either a car seat or booster seat in the rear of the car.
When she turns 8, the law says she can use the seat belt or a child passenger restraint system (booster seat).
When you are going to have her restrained with a seat belt, make sure the lap belt lays across the upper thighs (not the stomach) and the shoulder belt fits across the chest (not the neck). The recommended height for proper seat belt fit is 57 inches tall. For the best possible protection keep your daughter in the back seat, even though they can't wait to sit up front!
We've attached a pamphlet produced by the California Highway Patrol for you to download and review.