Permits Were Never Meant for a Kid’s Lemonade Stand

The lemonade stand has long been one of the simplest and most formative experiences of American childhood. A pitcher, a hand-lettered sign, and an afternoon of small transactions introduce a child to the satisfaction of her first real earnings. However, in many cities across America, a folding table at the end of a driveway can trigger a vending permit, a business license, or, depending on the city, a visit from code enforcement.

In May 2018, three brothers in Denver discovered this firsthand. Ben, William, and Jonathan, ages six, four, and two, set up a stand at a park across from their house to raise money for a child in Indonesia. Their mother, Jennifer Knowles, thought the afternoon would be a lesson in entrepreneurship and charity. The lesson turned out to be on municipal regulation. Someone complained that the stand lacked a vending permit, which would have cost $125 for a single day, more than half of what the boys raised before the police shut them down.

These stories keep recurring across the country, and they share a common root: laws written for full-time commercial operations are being applied to children selling lemonade for an afternoon.

Food safety regulations exist to protect the public from contaminated restaurants. Vending permits govern ongoing commercial use of public property. A child pouring lemonade for an afternoon falls outside both of those purposes, but most municipal codes draw no such distinction.

When a twelve-year-old sets up a stand at the end of her driveway, she is learning responsibility, math, customer service, and the dignity of earning her own money. That is exactly the kind of initiative a free society should celebrate, not penalize.

Lemonade Stand Laws address this gap precisely. They do not weaken food safety standards or permit children to open restaurants. They draw a sensible line so that when the seller is a minor, and the business is occasional, the standard permit-and-license framework does not apply. Texas put it plainly in 2019, prohibiting any municipality from regulating “the occasional sale of lemonade or other nonalcoholic beverages from a stand on private property or in a public park by an individual younger than 18 years of age.”

Utah passed the first such law in 2017, with Libertas Institute as the lead advocate. Colorado, Missouri, Nebraska, and Texas have followed, and more than a dozen states now offer similar protections.

Across the political spectrum, encouraging young entrepreneurship is a value most Americans share. Regulations should be calibrated to the problems they were written to solve, and a child with a pitcher and a sign is not one of those problems. Lemonade Stand Laws recognize the difference, and they protect a small but meaningful corner of American childhood.

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Justan Rice

Justan A. Rice, M.Ed. serves as Director of State Government Affairs at the Libertas Institute, an award-winning policy organization with an 87% track record of seeing its recommendations become law. She architects and leads Libertas’ national expansion beyond its Utah roots, carrying the organization’s legislative victories into state capitols across all 50 states. Her portfolio spans portable benefits legislation that gives independent workers access to retirement, health, and paid leave options; Fourth Amendment privacy protections against government data purchases and geofencing; regulatory sandboxes that reduce barriers to innovation; and policies that expand economic opportunity for young entrepreneurs. Ms. Rice manages a national network of contract lobbyists, builds trusted relationships with legislators and executive officials in diverse political environments, and personally guides bills from early drafting and sponsor recruitment through committee testimony and final passage. Ms. Rice brings more than a decade of executive leadership at organizations navigating high-stakes policy and political landscapes. As Executive Director of the Arizona School Boards Association, she stepped into a period of organizational crisis and led the turnaround – rebuilding member trust among 1,200+ school board members, introducing a strategic framework built on accountability, collaboration, and transparency, and serving as the organization’s chief lobbyist before legislators, state agencies, and the Governor’s office. She simultaneously oversaw two affiliated entities, Arizonans for Quality Education and the ASBA Insurance Trust, managing a combined multi-million dollar budget and 15-member staff. As President and CEO of the American Council of Engineering Companies of Arizona, she more than doubled membership, grew the state’s largest annual transportation conference by 20 percent, and championed infrastructure and engineering policy through direct state and federal lobbying and political action committee leadership at both levels. Ms. Rice’s impact extends well beyond the organizations she has led. Appointed by the Governor to Arizona’s State Board for Charter Schools and to the State Board of Education’s Special Education Advisory Panel, she has shaped education policy from both the advocacy and governance sides of the table. Her perspective on workforce reform and regulatory policy has reached national audiences through op-eds in the Phoenix Business Journal, the Magnolia Tribune, and the Atlanta Journal-Constitution, making the case for legislative solutions that expand opportunity for independent workers and entrepreneurs. She holds a Master of Education from Arizona State University.

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