AZ HB2329

Increases minimum allocation of annual revenues from contributions that school tuition organizations (STOs) must spend on educational scholarships or tuition grants from 90% to 95%.

Applies the 95% allocation requirement to contributions made under sections 20-224.06, 20-224.07, 43-1089, 43-1089.03, 43-1183, and 43-1184.

Updates references to federal child nutrition act statute citations from 42 U.S.C. sections 1751-1785 to 1751-1793.

Amends both income tax credit provisions (sections 43-1502 through 43-1505) and insurance premium tax credit provisions (sections 43-1602 and 43-1603) for STOs to reflect the increased allocation percentage.

Clarifies that STOs cannot award scholarships solely based on donor recommendations and must consider financial need of applicants.