Representative John Hershey, R-Juniata/Franklin/Mifflin, speaks about House Bill 664 on the House of Representatives floor in April.

The smallest of small businesses are getting some protection from state and local regulations.

House Bill 664, sponsored by Rep. Johnathan D. Hershey, R-Juniata/Franklin/Mifflin, has been passed unanimously by both the House of Representatives and the Senate and has been presented to Gov. Tom Wolf for his approval. The legislation amends state law to allow children to operate lemondate stands or other small businesses without receiving a business license from their local municipality or homeowners’ association.

“When I was first elected to office I was shocked to read an article about a Washington, D.C. family that was fined $500 by their local municipality for allowing their child to operate a lemondate stand,” Hershey said on the House floor in April when House Bill 664 was passed. “I was more shocked to find out later that this actually happens here in the commonwealth and that some of our municipalities have cracked down on these minor-run businesses as well.”

Hershey’s legislation exempts a business that is owned by one or more youth under the age of 18 that doesn’t make more than $5,000 net proceeds each year and operating on an occasional basis from any licensing requirements. License exemptions would be available if a business is open fewer than 84 days a year. It would also waive the $5,000 cap if the stand is created to benefit a charity. Lemonade stands or other similar minor-owned businesses would not be allowed to be prohibited in areas that are primarily residential or unzoned.

Hershey’s bill does limit where youth-owned businesses can set up by stating locations must be a sufficient distance away to prevent the youth’s business from directly competing with a business that is licensed by the state.

In addition to lemonade stands, Hershey said the bill would protect youth who mow lawns or shovel snow to make money.

“The short-term jobs that these kids have and the businesses that they start benefit them for a lifetime,” Hershey said. “It teaches marketing skills, iti teaches bookkeeping skills and allows our young entrepreneurs the freedom to operate.”