AZ HB2057

Amends Arizona law governing School Tuition Organizations (STOs) to prohibit awarding scholarships solely on the basis of donor recommendations, though donors may still recommend beneficiaries.

Requires STOs to consider donor recommendations only as one factor among others when evaluating scholarship applications, rather than as a determining factor.

Maintains the prohibition on donors designating beneficiary students as a condition of contribution and prevents facilitation of beneficiary designation exchanges that violate tax credit regulations.

Requires STOs to publicly disclose on their website the percentage and total dollar amount of scholarships awarded to students meeting economic eligibility thresholds under federal lunch programs in the previous fiscal year.

Clarifies that STOs must consider the financial need of applicants when evaluating scholarship awards and maintain the 90% allocation requirement for educational scholarships and tuition grants.