AZ HB2296

Requires school tuition organizations (STOs) to award at least 66% of educational scholarships and tuition grants only to students whose family income does not exceed 185% of the income limit for reduced-price lunches under federal nutrition programs.

Mandates STOs to include on their website the percentage and dollar amount of scholarships awarded to students meeting federal free/reduced-price lunch income thresholds and those between that threshold and 185% of it.

Modifies audit and financial review requirements for STOs to specifically evaluate compliance with the 90% scholarship allocation requirement and the new 66% means-testing requirement for lower-income students.

Updates STO certification requirements to include the means-testing mandate as a condition for certification and retention, with violations subject to 90-day correction periods before removal from the certified organization list.