AZ HB2328

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

Requires STOs to give priority to students transferring from public schools to qualified schools when awarding scholarships from contributions made under section 43-1089.03.

Expands scholarship eligibility to include students transferring from governmental schools after attending for at least 90 days, students enrolling in kindergarten or preschool programs, and dependents of active-duty military members stationed in Arizona.

Mandates STOs include a notice in all donation solicitations and scholarship applications stating that scholarships cannot be awarded solely on donor recommendations and prohibiting donation swaps between taxpayers.

Requires STOs to display on their websites the percentage and dollar amount of scholarships awarded to students meeting federal free or reduced-price lunch income thresholds.