CA SB1510

Modifies the definition of "commercially useful function" for certified small businesses and microbusinesses under the Small Business Procurement and Contract Act to include specific performance requirements: executing distinct contract elements, actually performing or managing work, performing normal business services, controlling product procurement decisions, and limiting subcontracting to industry norms.

Establishes that contractors, subcontractors, or suppliers cannot be deemed to perform a commercially useful function if their role is limited to passing funds through to create the appearance of small business participation.

Applies the same "commercially useful function" definition modifications to the California Disabled Veteran Business Enterprise Program, which aims to meet or exceed a 3% participation goal for disabled veteran enterprises in state procurement contracts.

Maintains existing disabled veteran business enterprise requirements including 51% ownership by disabled veterans, management and control by disabled veterans, and U.S. location, while allowing successor ownership by spouses or children for up to three years after a majority owner's death or permanent medical disability.