AZ SB1098

Increases the minimum allocation of annual revenues for educational scholarships or tuition grants from 90% to 95% for school tuition organizations receiving contributions under income tax credit and insurance premium tax credit provisions.

Clarifies that school tuition organizations cannot award scholarships solely based on donor recommendations but may consider recommendations among other factors.

Prohibits students from simultaneously receiving scholarships while enrolled in both district/charter schools and qualified schools.

Requires school tuition organizations to include notice in solicitation materials and applications stating that scholarships cannot be awarded solely on donor recommendation and that taxpayers cannot swap donations to benefit their own dependents.

Applies the 95% allocation requirement and operational restrictions to both corporate donation programs for low-income and displaced students with disabilities, as well as the general scholarship programs.