AZ HB2199

Establishes a veteran-owned business participation goal for state procurement, starting at 1.5% in the first year and increasing to 3% or more in subsequent years, measured by overall dollar amounts spent annually.

Requires the director of the department of veterans' services to create a registry of veteran-owned businesses and verify veteran status using resources like the U.S. Department of Veterans Affairs VETBIZ registry or military discharge forms (DD-214).

Authorizes the director of the department of administration to establish procedures for meeting the goal and permits procurement officers to reserve certain procurements exclusively for registered veteran-owned businesses.

Requires veteran-owned businesses performing service contracts to use at least 50% of contract proceeds to pay employee salaries, with an exemption for construction contracts.

Defines "veteran" as a person separated from U.S. armed forces under honorable conditions after more than six months of active duty and "veteran-owned business" as a concern at least 51% owned and controlled by one or more veterans with a home office in Arizona.