Declares that the purpose of this act is to mitigate economic damage to veteran-owned businesses as a result of military service, and to provide opportunities to them in recognition of the outstanding service they have given to their country.

Requires the department to report to the legislature by December 1, 2009, and December 1st of each odd-numbered year thereafter outlining the progress made in implementing this act.

Encourages state agencies to award three percent of all procurement contracts that are exempt from competitive bidding requirements under RCW 43.19.1906(2) to veteran-owned businesses certified by the department under this act.

Provides that state agencies shall: (1) Perform outreach to veteran-owned businesses in collaboration with the department to increase opportunities for veteran-owned businesses to sell goods and services to the state;

(2) Keep a record of all contracts awarded to veteran-owned businesses as required by the department; and

(3) Report by December 1, 2009, and December 1st of each odd-numbered year thereafter to the department on the progress made in implementing this act as directed by the department.