MI SB0891

Establishes the "Michigan Invests Locally exemption" allowing Michigan-based issuers to raise capital from state residents without federal securities registration, provided they meet specific requirements including residency verification and disclosure standards.

Sets tiered funding caps: $1 million without audited financials, $2 million with audited financials, and $5 million for state public universities or tech transfer partnerships, with amounts adjusted every 5 years for inflation.

Requires issuers to file notice with administrator, provide comprehensive disclosure statements to purchasers, maintain escrow accounts, and deliver quarterly reports to investors until securities are no longer outstanding.

Restricts purchaser investments to $10,000 unless they are accredited investors; voids contracts if purchasers misrepresent residency or resell securities to non-residents within 9 months, allowing issuers to recover damages up to the investment amount.

Exempts websites facilitating offerings from broker-dealer registration if they do not offer investment advice, solicit purchases, compensate based on sales, or handle funds, and requires website operators to file notice with administrator and update information annually.