AZ HB2330

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

Adds a new violation for STOs that fail to meet the 66% means-testing requirement, subject to the same 90-day correction period and potential removal from the certified organizations list.

Requires STOs to publicly display on their website the percentage and dollar amount of scholarships awarded to students meeting the economic eligibility thresholds for free or reduced-price lunches.

Modifies audit requirements to specify that audits for STOs receiving $1,000,000 or more annually must evaluate compliance with both the 90% allocation requirement and the new 66% means-testing requirement.