AZ HB2298

Amends Arizona Revised Statutes section 43-1603 regarding school tuition organization (STO) scholarships and requires STOs to allocate at least 90 percent of annual revenue from tax credit contributions to educational scholarships or tuition grants.

Restricts STOs from awarding scholarships solely on donor recommendations and prohibits donors from designating student beneficiaries as a condition of contributions.

Requires STOs to prioritize contributions made under section 43-1089.03 for students who transferred from governmental schools, newly enrolled kindergarten or preschool students with disabilities, or dependents of armed forces members stationed in Arizona.

Mandates STOs disclose on their websites the percentage and dollar amount of scholarships awarded to students meeting federal free or reduced-price lunch income thresholds and those between 100-185 percent of those thresholds.

Prohibits STOs from awarding scholarships to students simultaneously enrolled in both a district/charter school and a private qualified school.