AZ HB2234

Amends Arizona Revised Statutes section 43-1603 regarding School Tuition Organization (STO) operational requirements and scholarship eligibility.

Requires STOs to allocate at least 90 percent of annual revenue from tax credit contributions toward educational scholarships or tuition grants for students attending qualified schools.

Expands eligibility for scholarships funded by section 43-1089.03 contributions to include students who transferred from public schools, students enrolling in kindergarten or special needs preschool, dependents of armed forces members stationed in Arizona, and returning students continuing at qualified schools.

Prohibits STOs from awarding, designating, or reserving scholarships solely based on donor recommendations, and requires consideration of applicant financial need in scholarship decisions.

Requires STOs to give priority to students and siblings on waiting lists when awarding scholarships from section 43-1089.03 contributions.