Invest in Missouri Goes to Governor

Legislation to reinvest $1 billion in Missouri passes final vote 155-0

JEFFERSON CITY - More than two months after being introduced, Invest inMissouri was passed by the House of Representatives today 155 to 0. The legislation now heads to Governor Jay Nixon’s desk before becoming law. The legislation was championed by State Treasurer Clint Zweifel.

"The passage of Invest in Missouri gives the state a strategic tool as we fight to turn the economy around," Treasurer Zweifel said. "The expansion of the Missouri Linked Deposit Program is critical, and taxpayers will be getting a fair return on state deposits for the first time in more than half a century. This legislation costs Missourians nothing; in fact it will return $10 to $15 million per year on taxpayers’ investments when fully phased in."

Invest in Missouri, House Bill 883 and Senate Bill 542, enjoyed broad bipartisan support in the legislature, with SB 542 weaving its way to the finish line first. During the entire legislative process, Invest in Missouri, did not register one "No" vote in committee or on the House or Senate floors. Sen. David Pearce, R-Warrensburg, sponsored the legislation in the Senate.

"Missourians are hurting, and this is timely legislation to help rebuild the economy," Sen. Pearce said. "Invest in Missouri lets us move Missouri’s economy forward with the help of Republicans and Democrats."

The House sponsor of Invest in Missouri is Rep. Tim Flook, R-Liberty. Rep. Flook, Rep. Paul LeVota, D-Independence, and Treasurer Zweifel campaigned for the legislation in March.

"Passing this bill is the right thing for taxpayers," Rep. Flook said. "Missourians are getting a fair shake on their investments now, and we are doing it all at no cost. This is good government."

Invest in Missouri will be delivered to Gov. Nixon’s desk. If signed, the legislation will expand eligibility guidelines for the Missouri Linked Deposit Program. The Missouri Linked Deposit Program is designed to place state funds with community banks at below-market interest rates so the community bank can issue loans to borrowers at a reduced rate. Loan savings are usually 2 to 3 percent to the borrower. The program’s $720 million statutory cap is only about 30-percent utilized. Expanded eligibility guidelines will open up the state’s small business, job creation, agriculture and alternative energy loan programs to more businesses and farmers. Local government assistance linked deposits will also become available as part of the legislation.

Additionally, Invest in Missouri will phase out, over five years, the statutory interest rate cap that ties state time deposits to the return of short-term U.S. Treasury securities. That yield has been as low as 0.20 percent of late. Removing the restrictive cap will allow the state to receive a yield closer to the rates offered by banks to an individual, business or any other government entity in Missouri. The market rate currently is about 1.5 percent, resulting in increased returns to taxpayers of about $10 to $15 million per year once fully phased in by law.

The legislation was supported by the Missouri Bankers’ Association and the Missouri Independent Bankers’ Association.

"I applaud the handlers of this legislation, leadership of both parties and supporters of the bill," Treasurer Zweifel said. "There was commitment to pass this legislation at a critical time in our state, and that is exactly what has been accomplished."

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