AZ SB1214

Increases minimum allocation requirement for school tuition organizations (STOs) from 90% to 95% of annual revenues from contributions for educational scholarships or tuition grants.

Applies the 95% allocation requirement to both income tax credits (sections 43-1183, 43-1184, 43-1089, 43-1089.03) and insurance premium tax credits (sections 20-224.06, 20-224.07).

Prohibits STOs from awarding scholarships solely based on donor recommendations; donors may recommend beneficiaries but awards must consider other factors including financial need.

Prohibits STOs from allowing donors to designate student beneficiaries as a condition of contribution and requires notice to donors and applicants about these restrictions.

Requires STOs to disclose on their websites the percentage and dollar amount of scholarships awarded to students at different income levels based on national school lunch program thresholds.