When Representative Cam Cavitt heard that kids in his Michigan district were being charged fees just for selling lemonade, he decided to do something about it. The Republican legislator from Cheboygan introduced a bill to protect young entrepreneurs, and it just passed the state house by a wide margin. Now, children across Michigan can run lemonade stands without worrying about government fees or complicated rules. Representative Cavitt says this is about giving kids a real-world lesson in business. "This is a practical change that will make it easier for our kids to gain real business experience and develop civic responsibility. I was glad to see the votes pour in," he told CBS News. The story behind House Bill 6007 started when parents in Cavitt's district reached out to him after their local health department demanded repeated fees from children selling lemonade. The department wanted the kids to pay up simply for operating small drink stands in their neighborhoods. That got Cavitt thinking: if kids cannot even sell lemonade without jumping through bureaucratic hoops, what chance do they have to learn basic business skills? Under the new law, minors in Michigan can operate a temporary food business serving drinks like lemonade on private property without paying any fees to the state. The only rules are that the beverages cannot be alcoholic and the stand must earn less than $5,000 per year. That threshold is high enough to cover most childhood lemonade businesses and even some more ambitious young ventures. Michigan is not alone in this thinking. Texas and Georgia have already made lemonade stands exempt from most business requirements. Colorado went even further with something called the "Tamale Act," which allows people to sell home-cooked meals informally if they take a food safety course and do not transport the food more than two hours from where it was made. Colorado House Majority Leader Monica Durra said the law gives people a chance to turn family recipes into real businesses. Back in Michigan, Cavitt's bill still needs approval from the state Senate before it becomes law. But its overwhelming passage in the house suggests strong support. For now, young Michiganders can dream big about their summer stands, knowing the state is on their side.
← News
Local Gov. Wins Local Government Wins Power
New Law Would Protect Kids’ Lemonade Stands After State Employees Were Caught Demanding Fees

Overwhelmingly Bill passed in state house
$5,000 per year Annual revenue limit
6007 House Bill number
3 States with similar exemptions
Overwhelming votes in state house