AZ HB2814

Requires school tuition organizations (STOs) to award at least 66% of educational scholarships and tuition grants only to students whose family income does not exceed 185% of the income limit for reduced-price lunches under federal nutrition acts.

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

Establishes 66% means-testing requirement as a violation subject to department notice and potential removal from the certified STO registry if not corrected within 90 days.

Requires financial audits for STOs receiving $1,000,000 or more annually and financial reviews for those receiving less, with audits specifically evaluating compliance with scholarship allocation and means-testing requirements.

Clarifies that audit and financial review costs are paid from operating funds and excluded from scholarship spending calculations.