AZ HB2584

Establishes a state procurement participation goal for veteran-owned businesses of at least 1.5% in the first year following the effective date, increasing to 3% or more in subsequent years, based on overall annual state spending under the procurement code.

Directs the Department of Veterans' Services to create a registry of veteran-owned businesses to verify veteran status and eligibility using federal resources including the VA VetBiz registry and DD-214 forms.

Authorizes the Department of Administration to establish procedures for meeting the participation goal and allows 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-owned business" as a business at least 51% owned by veterans receiving combat-related special compensation, controlled by veteran owners in daily operations, with its home office located in Arizona.