AZ HB2794

Amends section 43-1603, Arizona Revised Statutes, regarding school tuition organization (STO) scholarship procedures and donor recommendations.

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

Requires STOs to include notice in donation solicitation materials and on websites stating that scholarships cannot be awarded, restricted, or reserved solely on a donor's recommendation.

Maintains requirement that STOs must consider financial need of applicants when evaluating and awarding scholarships.

Continues existing provisions requiring STOs to allocate at least 90 percent of annual revenue to educational scholarships or tuition grants and to prioritize eligible student categories under section 43-1089.03 contributions.