March 28th, 2017
Michigan Governor Signs Intrastate Crowdfunding Exemption
Yesterday Governor Rick Snyder signed Public Act 264 which establishes an intrastate exemption for crowdfunding in the state of Michigan. This allows Michigan residents to invest in businesses that reside within their state through crowdfunding platforms, essentially circumventing federal regulation. According to Governor Snyder, “This legislation enacts useful reforms that will streamline government procedures and eliminate confusing or unnecessary regulations.
What is particularly impressive about P.A. 264 is the speed with which it moved through the legislature and ended up on the Governor’s desk. Republican State Representative Nancy Jenkins, who introduced the legislation, held a hearing before the Michigan House Commerce Committee on October 16 and a little over two months later it became law with overwhelming bi-partisan support.
View: FCAA Approves Canada's First Intra-Provincial Equity Crowdfunding Exemption in Saskatchewan Dec 6, 2013
Michigan is the latest state to implement an intrastate crowdfunding exemption and others are expected to follow suit. Local leaders believe that broad adoption of crowdfunding is inevitable and that they need to take control of their own fate. Nancy Jenkins summed up the sentiment, “By creating an intrastate exemption we are allowing Michigan residents to invest in Michigan businesses and create more jobs at the same time.
In the meantime, the JOBS Act, which authorizes crowdfunding at the national level, is winding its way through the rulemaking process. Title II which allows “general solicitation” of private placements to accredited investors is already in place. The rules for Title III, which permits advertising to non-accredited investors, were published on October 23 for public comment and are expected to be finalized in the first quarter of 2014.