The MAMTEK bill that was on the endangered list in the state senate last night because of an unwelcome amendment, has been resurrected with several changes and has been sent back to the House.

The bill requires communities and the economic development department to do a better job of researching companies that want communities to help finance their developments. Sponsors say the goal is to keep other communities from falling into the same trap that Moberly fell into last year with the MAMTEK sweetener plant.  Moberly issued millions of dollars in bonds but MAMTEK shut down its development with the building half finished. 

The bill has amendments that create a new tax credit program to lure big time athletic events to Missouri, that limit credits for historic preservation, and set up annual reviews for other tax credit programs.   Cape Girardeau Senator Jason Crowell says tax credits need to be controlled because the state is giving away too much of its income each year. He says Missouri will forego about $700 million in income this year because the credits.

He says one major target next year will be low income housing tax credits, which Crowell says is “a killer to the state.” 

The House has to agree with the Senate changes in the bill before it can be sent to the governor. Some compromises might have to be worked out between the House and the Senate but senate sponsor Jim Lembke of St. Louis thinks there’s plenty of time to do that in the last two days of the legislative session.

A proposed new law designed to protect Missouri communities from falling victim to another MAMTEK scheme is close to legislative approval.  But it has picked up an amendment in the Senate that threatens to kill it.

MAMTEK, you’ll recall, is the Chinese company that talked Moberly into issuing tens of millions of dollars in bonds for a sweetener plant project that turned sour last year. Two legislative committees have investigate and have produced a proposed law that protects cities from similar debacles and requires the Department of Economic Development to be more vigilant.

Senate sponsor Jim Lembke describes the bill as “an effort to protect our communities” and develop more credible tax credit tools.

But Senator Eric Schmitt wants to tack on a five-dollar-per ticket tax credit to lure major athletic events to Missouri such as the NCAA tournament or the Super Bowl. He’s been trying to get the idea passed for three years and sees Lembke’s bill as the last chance he has to get his idea enacted this year.

Lembke, though,  says the legislature is in no mood to talk about new tax credits. Schmitt won’t withdraw his amendment…so Lembke has withdrawn his bill from debate.  The two have three days left to work something out.

 AUDIO: Listen to the debate 8:15