Rarely will you hear me refer to a piece of legislation as “fun” – but this article marks an exception. House Bill 1077, “Child Operated Refreshment Stands,” was heard last Thursday, March 18, in the Senate’s Commerce and Technology Committee.
Between my time in Governor Pence’s office and here at the Indiana Chamber, I am nearing a decade’s worth of experience at the Statehouse. I have reviewed thousands of bills, quarterbacked legislation through the process and oversaw its implementation (some that I helped write), and even helped kill bills that were not in the best economic interest of our state. Rarely though did I anticipate a committee hearing and think, “I am going to have a lot of fun talking about this bill!”
So was the case with HB 1077. But, unfortunately, I never got my chance.
In short, the bill says that neither the government nor a homeowners’ association can preclude a minor from selling “lemonade or other nonalcoholic beverages from a stand on private property or in a public park” – so long as the child is accompanied and has the permission of the park manager or property owner.
The need for more young entrepreneurs in our state is well documented. The Kauffman Foundation’s most recent Indicators of Entrepreneurship ranks Indiana as the eighth worst state for “rate of new entrepreneurs” (i.e., “percent of population that starts a new business”) and fifth worst for “startup early job creation” [i.e., “average number of jobs created by startups in their first year (normalized by population”)]. In other words, Hoosiers are not starting enough new businesses and those that are launched are either underfunded or slow to take off.
Hence why legislation like HB 1077 is so important. Just like STEM is a cornerstone of early childhood education – so too should be learning about business creation, management and the power of earning a buck. Beth Kobliner writes, “By age three, your kids can grasp basic money concepts. By age seven, many of their money habits are already set,” and she advises parents of young children to start “wringing money lessons out of everyday life.”
Admittedly, I intended to bring a little personal bias to my testimony. By age five, I was selling vegetables from my grandpa’s garden to my neighbors from my Radio Flyer. By age eight, my brothers and I had a lemonade stand every Saturday during the summer. And last year, I helped my six-year-old set up her first Gatorade stand selling to golfers as they walked by. Consequently, she was able to buy whatever “junk” kids like these days (as did I back in the day).
Now, none of this made me an “excellent” entrepreneur, but it instilled an entrepreneurial spirit that never left. The genius of HB 1077 is not that it will spur more children to launch lemonade stands; rather, it will keep “red tape” from preventing those who want to try.
The House passed HB 1077 96-0, but as things stand the full Senate will never get its chance to vote on it. Last Thursday, the bill was met with opposition from committee members Senators Scott Baldwin (R-Noblesville) and Shelli Yoder (D-Bloomington). They argued it is a “local control” issue, and local health departments should maintain the authority to inspect and/or shut down lemonade stands that fail to meet the relevant health code. Committee Chairman Chip Perfect (R-Lawrenceburg) refused to hear my – or anyone else’s – testimony and abruptly “held” the bill; the first step in the measure’s ultimate demise.
The moral of the story is this: There are things you can do to help Indiana’s current and future entrepreneurs. If you are a parent, take time this summer to teach your child about starting a business – whether it be vegetables or lemonade. You can also learn about and support organizations like StartEdUp, The Ron Rubin School for the Entrepreneur, Junior Achievement of Northern Indiana, Lemonade Day or any other initiative geared towards young entrepreneurs in your community. Maybe even consider becoming an angel investor in a new startup.
Whatever you choose to do, we all have a role to play in making Indiana a more welcoming place for entrepreneurs to live, work, play and innovate.
