AZ HB2063

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

Requires STOs to use at least 90% of contributions made under Section 43-1089.03 for educational scholarships or tuition grants for students who transferred from governmental schools, enrolled in qualified schools for kindergarten/preschool programs, or are dependents of armed forces members stationed in Arizona.

Prioritizes scholarship awards to students and siblings already on waiting lists when distributing funds from Section 43-1089.03 contributions.

Maintains existing requirements that STOs cannot award scholarships solely based on donor recommendations, must consider financial need, and cannot allow donors to designate beneficiaries as a condition of contribution.

Allows excess scholarship funds that exceed a school's tuition to be reallocated as multiyear awards for the same student or used for other students' scholarships.