AZ HB2763

Amends Arizona Revised Statutes section 43-1603 regarding school tuition organization (STO) operational requirements for tax credit scholarships.

Removes requirement that at least 90% of contributions under section 43-1089.03 be awarded to students who previously attended a governmental school, homeschooled students, military dependents, out-of-state movers, or empowerment scholarship account participants.

Eliminates language allowing continuation scholarships for students who received prior awards under the specified categories to renew in subsequent years.

Maintains existing requirements that STOs allocate 90% of annual revenue to scholarships, not limit scholarships to one school, consider financial need, and provide transparency on awards to low-income students.

Clarifies that excess scholarship amounts above tuition must be returned to the STO for reallocation as multiyear awards or scholarships for other students.