AZ SB1294

Amends Arizona Revised Statutes Section 43-1603 to require school tuition organization (STO) scholarships be limited to students whose family income does not exceed 185 percent of the federal reduced-price lunch income limit.

Requires STOs to allocate at least 90 percent of annual revenue from tax credit contributions to scholarships for low-income 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.

Permits students who are eligible for reduced-price lunches but do not claim that benefit to still qualify for STO scholarships based on income eligibility.

Maintains existing prohibitions on awarding scholarships solely based on donor recommendations and prevents students from simultaneously enrolling in both district/charter schools and qualified schools while receiving scholarships.