Paul Gow stands alone in third place at 9-under-par 135. Kyle Thompson was one stroke further back at minus-8.
Dan Olsen, who held a share of the lead after round one with Guy Boros, carded a 1-under 71. He is joined in fifth place at 7-under-par 137 by Ben Bates, Shane Bertsch, Zoran Zorkic and Gavin Coles.
Veazey rolled in a 20-foot birdie putt at the first to get his round going. However, he tripped to a bogey at the next. The two-time winner on tour came back with a birdie at the fourth at Fox Den Country Club.
The 38-year-old ran home a 35-foot birdie attempt at the sixth, then sank back-to-back birdies from the eighth to make the turn at minus-7.
Veazey sank a long eagle putt at the 10th and moved to 10 under with a birdie at the 14th. He faltered to a bogey at the next, but grabbed a share of the lead with a 4-foot birdie putt at the last.
'It was a good start,' said Veazey. 'The pins were in some tough spots today. The putter pretty much kept me in there today.'
Painter two-putted for birdie at the first, then sank a 10-footer at the third for his second birdie. The Australian ran off three straight birdies from the seventh, all from within 4 feet.
He made it four in a row with a two-putt birdie at the par-5 10th. He stumbled to his lone bogey at the 12th, but managed to birdie No. 18 to share the lead.
'I haven't played much this year,' said Painter. 'If I could play golf the rest of my life like I did today, I would sleep very well at night. I played so nicely today.'
Boros and two-time winner this season Jimmy Walker each stand at 6-under-par 138. They are joined there by Nick Watney, Kevin Johnson, Wook-Soon Kang and Andy Morse.
Steven Alker and Jason Buha pace a group of eight players one stroke further back at minus-5.
The cut line fell at 2-under-par 142 with 62 players advancing to the final two rounds. Among those missing the cut were Todd Demsey (143), Doug Barron (144) and Doug Garwood (146).