AZ HB2061

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.

Prohibits STOs from awarding, designating, or reserving scholarships solely on the basis of donor recommendations, though donors may recommend candidates for consideration among other factors.

Requires STOs to consider financial need of applicants when evaluating applications and awarding scholarships.

Requires STOs to include notices in printed materials, applications, and websites informing donors that scholarships cannot be awarded solely based on donor recommendations and that taxpayers cannot swap donations to benefit their own dependents.

Applies the 95% allocation requirement and operational restrictions to both income tax credit STOs (sections 43-1502 through 43-1505) and insurance premium tax credit STOs (sections 43-1602 through 43-1603).