AZ HB2210

Requires school tuition organizations (STOs) to award at least 66 percent of educational scholarships and tuition grants from tax credit contributions only to students whose family income does not exceed 185 percent of the reduced-price lunch income threshold under federal nutrition acts.

Adds a new requirement for STOs to include on their websites the percentage and total dollar amount of scholarships awarded to students in two income categories: those qualifying for free or reduced-price lunches, and those up to 185 percent of that threshold.

Requires financial audits (for STOs receiving $1 million or more in donations) to evaluate compliance with the 66 percent means-testing requirement for scholarship awards.

Maintains existing operational requirements prohibiting STOs from limiting scholarships to one school, awarding scholarships solely based on donor recommendations, or allowing donors to designate beneficiaries as a condition of contribution.

Applies the new 66 percent income-based scholarship requirement to contributions made under both the standard tax credit (section 43-1089) and the enhanced tax credit (section 43-1089.03).