AZ HB2250

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

Adds new compliance violations for STOs, including failure to meet the income-based scholarship requirement, and establishes a 90-day correction period before the Department of Revenue can revoke certification.

Requires STOs to disclose on their websites the percentage and dollar amount of scholarships awarded to students in two income categories based on federal nutrition program eligibility thresholds.

Modifies audit requirements for STOs receiving $1,000,000 or more in donations to specifically evaluate compliance with the 90% allocation requirement and the new 66% means-testing requirement.

Updates financial review standards for smaller STOs receiving less than $1,000,000 in donations to evaluate compliance with fiscal requirements of the article.