AZ HB2209

Increases the minimum percentage of annual revenues that school tuition organizations (STOs) must allocate to educational scholarships or tuition grants from 90% to 95% for contributions made under sections 20-224.06, 20-224.07, 43-1183, 43-1184, 43-1089, and 43-1089.03.

Requires STOs to include notice on printed materials, applications, and websites stating that organizations cannot award scholarships solely based on donor recommendations and that taxpayers cannot claim credits if swapping donations with other taxpayers to benefit their dependents.

Prohibits STOs from awarding, restricting, or reserving scholarships based solely on donor recommendations, though donor recommendations may be considered among other factors in evaluation.

Requires STOs to consider financial need of applicants when awarding scholarships and to give priority to students on waiting lists for subsequent-year scholarships.

Establishes that STOs must not allow simultaneous enrollment of students in both district/charter schools and qualified schools for scholarship purposes, and clarifies procedures for evaluating and awarding scholarships with donor input.