AZ HB2563

Adds three new restrictions on Arizona Empowerment Scholarship Account (ESA) spending: prohibits selling purchased items while enrolled, requires department approval for transactions of $500 or more, and requires using the least expensive available alternative for educational goods and services.

Establishes department authority to adopt rules determining whether expenses are allowed and whether less expensive alternatives are available for ESA purchases.

Makes technical corrections to existing ESA provisions, including clarifying language about student withdrawal procedures and changing "a" to "the" in multiple subsections.

Maintains existing ESA allowable expense categories including tuition, textbooks, educational therapies for qualifying students, tutoring, curricula, online programs, standardized tests, postsecondary institution costs, and transportation services.

Preserves existing oversight mechanisms including annual audits, appeals processes through the state board of education, fraud reporting options, and the requirement to develop annual policy handbooks for ESA participants.