According to the Sacramento Business Journal:
A Sacramento judge has thrown out a state rule that bars site-selection consultants from claiming a share of incentives awarded by the California Competes program.
Sacramento Superior Court judge Timothy Frawley on Thursday sided with a Dallas firm that challenged the rule. That firm, Ryan, sued the Governor’s Office of Business and Economic Development over a 2014 regulation involving tax credits the state provides to businesses that create jobs here.
The administration imposed the ban to ensure that businesses — not consultants — received the entirety of awards from its California Competes program. But Frawley wrote that the agency, known as GO-Biz, “exceeded its statutory authority” with its regulation. The ban does not advance the program’s goals of stimulating job growth and business investment in California, he concluded.
“The only thing the ban is likely to accomplish is discourage businesses with contingent fee arrangements from participating in the California Competes tax credit program,” Frawley wrote.
GO-Biz declined to comment on the ruling or say if it plans to appeal. A representative of Ryan was not immediately available for comment. Ryan filed the suit in August 2014.