JEFFERSON CITY –A bill championed by State Treasurer Clint Zweifel just cleared the Missouri House and is on its way to the governor.

The bill (SB542) phases out a statutory cap on the amount of interest the state can earn on its bank deposits. State law now limits the interest to the level paid on U.S. Treasury bills — one-third of 1 percent on six-month deposits.

As our business writer Jim Gallagher explained last month, the key to passage came when the bill’s backers reached a compromise with banking lobbyists to phase out the interest rate cap over five years. The bill also would allow more businesses to qualify for low-interest bank loans under the state’s “linked-deposit” program.

The bill passed 155-0 amid praise for the bipartisan cooperation it represented. Zweifel is a Democrat and both chambers are Republican-run. Sen. David Pearce, R-Warrensburg, and Rep. Tim Flook, R-Liberty, sponsored the bill.