AZ HB2488

Increases the minimum percentage of annual revenues that school tuition organizations (STOs) must allocate to educational scholarships or tuition grants from 90% to 95% for contributions made under sections 20-224.06, 20-224.07, 43-1183, 43-1184, 43-1089, and 43-1089.03.

Applies the 95% allocation requirement to both existing STOs under Chapter 15, Article 1 (sections 43-1502 through 43-1505) and ETOs under Chapter 16, Article 1 (sections 43-1602 through 43-1603).

Limits administrative costs and overhead expenses for STOs by capping allowable non-scholarship spending at 5% of annual revenues from contributions designated for tax credit purposes.

Maintains existing operational requirements including prohibitions on limiting scholarships to one school, collusion with other organizations, and awarding scholarships based solely on donor recommendations.

Updates cross-references in the statute to the National School Lunch and Child Nutrition Acts from section 1751 through 1785 to section 1751 through 1793, and makes technical corrections regarding email communication and terminology.