AZ HB2213

Amends Arizona Revised Statutes section 43-1603 regarding school tuition organization (STO) operational requirements and scholarship awards.

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

Prohibits STOs from awarding scholarships solely based on donor recommendations and restricts donors from designating beneficiaries as a condition of contribution.

Requires at least 90% of contributions under section 43-1089.03 to fund scholarships for students who transferred from public schools to qualified schools, newly enrolled kindergarten/preschool students, or dependents of armed forces members stationed in Arizona.

Removes language allowing scholarships for students who previously received awards under chapter 15 of Arizona Revised Statutes if they continue attending a qualified school in subsequent years.