HB 2297 Summary

• Amends Arizona Revised Statutes section 43-1603 to prohibit school tuition organizations (STOs) from awarding scholarships solely on the basis of donor recommendations, though donor recommendations may be considered among other factors.

• Requires STOs to consider financial need of applicants when evaluating scholarship awards and designating scholarships.

• Mandates STOs to not allow donors to designate student beneficiaries as a condition of contribution and prohibits facilitating exchanges of beneficiary designations in violation of section 43-1089.

• Requires STOs to include on their website the percentage and dollar amount of scholarships awarded to students meeting federal free or reduced-price lunch income thresholds and to students at 185 percent of those thresholds.

• Requires STOs to provide notice in solicitation materials and applications stating that scholarships cannot be awarded solely on donor recommendation and that taxpayers cannot claim credits for donation swaps benefiting their own dependents.