Today The Detroit News has published a short editorial in support of Michigan HB 5273 (embedded, bottom of article), a bill that seeks to cement Michigan’s recently-passed intrastate crowdfunding exemption by creating secondary markets where crowdfunded shares can be traded.
The bill’s primary sponsor is a familiar name: Representative Nancy Jenkins (R-Clayton), who also sponsored the bill that led to Governor Rick Snyder signing Public Act 264 and putting a crowdfunding exemption into Michigan state law. That exemption is dubbed the Michigan Invests Locally Exemption, or MILE.
HB 5273 would create a legal framework under which an intrastate stock exchange could exist. “Right now, small businesses are looking to raise capital and connect with the investors who could provide that money, and this bill meets that demand and opens the door for a secondary market for those securities,” said Jenkins. “By creating the framework for a local stock exchange, we can better facilitate crowdfunding in Michigan and do even more to help start-up companies and small businesses grow and thrive in our state. We are setting Michigan apart with our focus on local investment.”
The bill is sponsored by 19 Republicans and one Democrat. It has been referred to the Committee on Commerce. We’ll have more information as it becomes available. The proposed bill is below…