AZ SB1158

Amends Section 12-341.01 to clarify that courts may award reasonable attorney fees to the successful party in contested contract actions, and adds two exceptions where attorney fees cannot be awarded: actions alleging violations of federal or state constitutions or laws, and actions seeking only equitable relief against government entities.

Modifies the language in Section 12-341.01 from "shall" to "does" in describing how the section relates to contracts and other statutes providing for attorney fees.

Adds a new category (paragraph 8) to Section 12-348 allowing courts to award fees and expenses to parties who prevail in civil actions for declaratory or injunctive relief against the state or political subdivisions for actions violating federal or state constitutions or state law.

Maintains existing caps on attorney fee awards at $350 per hour or the amount actually paid, whichever is less, and limits awards against the state or municipalities to $125,000 per judicial appeal level.

Preserves requirements that government entities pay awarded fees within 30 days, with unpaid awards transferable to the Department of Administration for collection.