AZ SB1736

Amends Arizona Revised Statutes section 43-1603 to require school tuition organizations (STOs) to award scholarships only to students whose family income does not exceed 185 percent of the income limit for reduced-price lunches under federal nutrition programs.

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

Mandates STOs disclose on their websites the percentage and dollar amount of scholarships awarded to students at different income levels during the previous fiscal year.

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

Maintains existing provisions prohibiting donor designation of scholarship recipients and requiring consideration of applicants' financial need.