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A license for a lemonade stand? States rethink business licensing

Posted by   /  August 14, 2019  /  No Comments

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This spring, Arizona passed the first law recognizing occupational licenses issued in other states

By Alan Greenblatt | Governing magazine

This June, Texas Gov. Greg Abbott signed a bill blocking local governments from forbidding children to sell lemonade or other non-alcoholic drinks on private property. (Yes, there was a real-life example of cops shutting down a lemonade stand run by two sisters under the age of 10 who lacked a permit.) “This is a commonsense law,” Abbott said. Few people would disagree.

After years of increasing the number of occupations subject to licensing and permit requirements, states are starting to dial back. Where only 1 out of 20 jobs required an occupational license back in the 1950s, now more than 1 out of 4 do. Policymakers are increasingly convinced by the argument that states are stifling economic activity by requiring expensive and unnecessary training and licenses for everyone from cosmetologists to yoga instructors.


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