AZ HB2212

Amends Arizona Revised Statutes section 43-1603 to modify how school tuition organizations (STOs) award scholarships funded by tax credits.

Prohibits STOs from awarding scholarships solely on the basis of donor recommendations, but allows donors to recommend beneficiaries and permits STOs to consider recommendations among other factors in their evaluation.

Requires STOs to include a notice in solicitation materials and applications stating that scholarships cannot be awarded solely on the basis of donor recommendations and that taxpayers cannot swap donations to benefit their own dependents.

Maintains existing requirements that STOs allocate at least 90 percent of annual revenue to scholarships, consider financial need of applicants, and not limit scholarships to students from only one school.

Specifies that for contributions under section 43-1089.03, STOs must use at least 90 percent for scholarships to students who transferred from public schools, enrolled in kindergarten/preschool, are dependents of armed forces members, or received prior scholarships.