AZ SB1643

Amends Arizona Revised Statutes sections 12-341.01 and 12-348 to modify rules for awarding attorney fees and court costs in civil litigation.

Adds exception to section 12-341.01 preventing attorney fee awards in contested actions where a government entity is a party and the contract or provision is challenged as violating the U.S. Constitution, Arizona Constitution, or state law.

Adds new category to section 12-348 requiring courts to award fees and expenses to parties who prevail in civil actions seeking declaratory or injunctive relief against state or local governments for actions violating the Constitution or state law.

Updates maximum attorney fee caps in section 12-348: maintains $75 per hour for most awards (with exceptions), $350 per hour for tax-related actions, and $75,000 per appeal level for certain prevailing party awards.

Requires automatic annual adjustment of maximum fee award amounts based on the Phoenix metropolitan consumer price index beginning January 1, 2016.