AZ SB1738

Establishes the Office of Defense Innovation within the state authority to serve as a liaison between Arizona, the U.S. Department of Defense, and national security organizations to increase federal defense funding and support defense-related industries.

The Office of Defense Innovation must develop strategic plans, support Arizona-based defense contractors, collaborate with universities and research institutions on defense research and development, and support emerging technology commercialization.

Office of Defense Innovation must submit annual reports by December 31 beginning in 2026 to the governor, legislature, and secretary of state detailing activities, achievements, and recommendations.

Amends the microbusiness loan program by extending reporting deadlines from February 1, 2024 and July 31, 2024 to February 1, 2026 and July 31, 2026, and extends the program repeal date from June 30, 2025 to June 30, 2027.

Applies the amended microbusiness loan program provisions retroactively to June 29, 2025.