AZ HB2777

Amends Arizona's school tuition organization (STO) tax credit provisions in sections 43-1089, 43-1183, and 43-1184.

Increases the minimum percentage of annual revenue that STOs must allocate to educational scholarships or tuition grants from 90% to 95%.

Prohibits STOs from paying another entity for legal, accounting, or other services if the STO shares an owner, director, officer, agent, or employee with that entity.

Prohibits STOs from compensating their own owners, directors, officers, agents, or employees for outside services such as legal or accounting consulting.

Prohibits STOs from paying compensation to any person related by blood or marriage to an STO owner, director, officer, agent, or employee for services performed directly or by contract.