AZ HB2566

Establishes that School Tuition Organization (STO) scholarships must be awarded to students whose family income does not exceed 185% of the income limit for reduced-price lunches under federal child nutrition acts.

Requires STOs to allocate at least 90% of annual revenue from tax credit contributions to scholarships for students meeting the 185% income threshold.

Mandates STOs report on their websites the percentage and dollar amount of scholarships awarded to students meeting free/reduced-price lunch eligibility and to those between that threshold and 185% of the limit.

Prohibits STOs from awarding scholarships based solely on donor recommendations and requires consideration of applicants' financial need when evaluating scholarship awards.

Allows students who are eligible for reduced-price lunches to receive scholarships even if they do not claim that benefit.