AZ HB2098

Increases the minimum percentage of annual revenues that school tuition organizations must allocate to educational scholarships or tuition grants from 90% to 97%.

Adds new prohibitions for school tuition organizations, including restrictions on awarding scholarships solely based on donor recommendations and prohibiting donors from designating beneficiaries as a condition of contribution.

Requires school tuition organizations to include a notice in solicitation materials and on websites informing donors that scholarships cannot be awarded based solely on donor recommendations and prohibiting tax credit swaps between taxpayers.

Establishes that school tuition organization evaluations must consider applicants' financial need and may only consider donor recommendations as one factor among others, not as the sole basis for awards.

Prohibits qualified schools from accepting educational scholarships or tuition grants that exceed the total cost of educating the student receiving the scholarship or grant.