MI HB4996

Establishes the "Michigan Invests Locally exemption" allowing Michigan-incorporated companies to offer securities to Michigan residents without federal registration, subject to a $1-2 million cap depending on financial statement availability.

Limits individual investments to $10,000 unless the purchaser is an accredited investor, requires escrow accounts, and mandates quarterly financial reporting to purchasers until securities are no longer outstanding.

Requires issuers to provide detailed disclosure statements including business description, management information, use of proceeds, litigation history, and website details, with prominent risk warnings and investor certification of understanding.

Restricts resale of securities to non-Michigan residents within 9 months after offering closes; violating this restriction voids the original investment agreement and allows issuers to recover damages up to the investment amount.

Creates exemptions for internet-based offerings through qualifying websites that meet specific conditions, including filing notices with the state administrator and maintaining records of offers and sales.