CA SB1178

Prohibits businesses that are not small businesses or microbusinesses from qualifying as disabled veteran business enterprises (DVBEs) if they have 10 or more participation years in the program.

Defines "participation year" as a calendar year (on or after January 1, 2019) in which a non-small business or non-microbusiness DVBE fulfills a contract for more than six months.

Requires the Department of General Services to promulgate regulations ensuring successor businesses count their predecessor's participation years if owned by the same people or their immediate family members.

Mandates the Department of General Services to notify businesses approaching 10 participation years and assist in their transition out of the DVBE program.

Requires state departments awarding DVBE contracts to prioritize microbusinesses and small businesses over larger DVBE contractors.