House Pushes to Prevent Mamtek-like Problems
JEFFERSON CITY - In response to the failed Mamtek project in Moberly, the Missouri House gave first-round approval Wednesday to new, stricter requirements for companies requesting economic development incentives.
The measure would require state and local officials to share information they have about companies seeking development incentives. Specifically, executives of startup companies could be subject to financial background checks by the state.
Rep. Lyndall Fraker, R-Marshfield, voted against the measures, arguing that some things in the bill go too far in asking personal information of executives in companies that may want to relocate.
"It should be corporate information disclosed, not personal," said Fraker.
Proponents, though, hope the new mandates will help prevent Mamtek-like failures. Construction of the Mamtek U.S. Inc. factory stopped last fall after the sweetener company missed a payment on $39 million in bonds issued by the city.
The House must approve the legislation once more before the bill goes to the Senate.