Jonathan D. Miller for NC Senate

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GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
SENATE BILL [Number TBD]
Short Title: Legalize Sweet Tea Stands Act.
Sponsors: Senator Jonathan D. Miller (Primary).

A BILL TO BE ENTITLED 

AN ACT TO PROMOTE YOUTH ENTREPRENEURSHIP BY REMOVING REGULATORY BARRIERS FOR BUSINESSES OWNED PRIMARILY BY PERSONS UNDER 21 YEARS OF AGE, PROVIDING FEE-FREE PATHWAYS TO PROFESSIONAL TRAINING LICENSES, ESTABLISHING PROVISIONS FOR SIBLING-OWNED YOUTH BUSINESSES, LIMITING QUALIFYING ENTITIES TO INFORMAL SOLE PROPRIETORSHIPS OR LIMITED LIABILITY COMPANIES, REQUIRING ADULT GUARDIAN OVERSIGHT FOR CERTAIN FINANCIAL ACTIONS BY YOUNGER OWNERS, AND DIRECTING CONFORMING AMENDMENTS TO THE GENERAL STATUTES.

The General Assembly of North Carolina enacts:

SECTION 1. This act shall be known and may be cited as the "Legalize Sweet Tea Stands Act."

SECTION 2. Definitions.
For purposes of this act:
(1) "Youth-owned business" means a business that is 51% or more owned by one or more North Carolina resident U.S. citizens under the age of 21, and that is organized and operated as either (a) an informal sole proprietorship or (b) a limited liability company (LLC) under Chapter 57D of the General Statutes. The business must be named (including any assumed or trade name registered as required by law), though the name may be changed without incurring fees under this act's exemptions.
(2) "Non-hazardous categories" means activities not presenting unreasonable risk to public safety, including but not limited to the sale of food and non-alcoholic beverages (such as sweet tea, lemonade, or other similar drinks), crafts, small services, and similar low-risk ventures. This excludes sales or operations involving firearms, explosives, alcohol, tobacco, controlled substances, vehicles for hire, heavy machinery, hazardous chemicals, or any activity otherwise prohibited by State or federal law for reasons of public health or safety.
(3) "Sibling-owned youth business" means a youth-owned business where two or more siblings (as defined by blood or legal adoption) are named as owners in the founding documents (e.g., assumed name certificate for sole proprietorship or articles of organization/operating agreement for LLC), and that was founded while all such siblings were under age 21.

SECTION 3. Location and Solicitation Exemptions.
Notwithstanding any other provision of law, no city, county, or other local government unit shall enact, enforce, or maintain any ordinance, rule, regulation, or policy that restricts, prohibits, or requires a permit, fee, or other authorization for the operation or solicitation of a youth-owned business on public property, private property, or public property easements adjacent to private property, provided the business operates in non-hazardous categories.
Youth-owned businesses remain subject to general public safety laws, including prohibitions on blocking public rights-of-way, creating nuisances, or violating traffic or pedestrian safety rules. Direct solicitation by the owner (including signage and verbal offers) is permitted without additional vending, peddler, or solicitor permits.
This section preempts and supersedes any conflicting local ordinance, rule, or policy.

SECTION 4. Fee Exemptions for Youth-Owned Businesses.
Youth-owned businesses (including sibling-owned youth businesses) are exempt from all State and local filing fees, registration fees, business license fees, permit fees, assumed name/DBA registration fees, LLC formation/annual report fees, and similar charges associated with startup, name registration/change, or ordinary operations, notwithstanding any other provision of law. This exemption applies to provisions in Chapters 66 (Commerce and Business), 105 (Taxation), 57D (Limited Liability Companies), 161 (Register of Deeds fees for assumed names), and any other relevant chapters or local fee schedules.

SECTION 5. Sibling-Owned Youth Business Extension.
For a sibling-owned youth business, all rights, privileges, exemptions, and protections under this act (including location/solicitation leeway, fee waivers, and preemption) shall continue in full force until the youngest named sibling reaches the age of 21, provided the siblings maintain at least 51% collective ownership of the business and the founding documents continue to reflect the original sibling ownership structure (or equivalent successor documents reflecting the same intent).

SECTION 6. Financial Safeguards for Owners Under Age 16.
For any youth-owned business where one or more owners are under the age of 16:
(1) Any expenditure or disbursement from business funds or accounts exceeding $1,000 (whether single transaction or cumulative in a calendar year) requires the prior written approval and signature of an adult parent or legal guardian of the minor owner(s).
(2) The business shall not incur any debt, loan, credit obligation, or liability (including but not limited to loans, credit lines, vendor financing, or leases) without the personal liability and co-signature of an adult parent or legal guardian, who shall be jointly and severally liable for such obligations.
(3) Standard banking practices otherwise apply, including the ability to open and maintain business bank accounts (e.g., under custodial arrangements per Chapter 33A or other applicable law), accept deposits, make routine expenditures under $1,000 without additional approval, and conduct ordinary operations, subject to general banking regulations and the safeguards in this section.
These requirements do not apply to owners age 16 or older, who may manage finances independently under this act's exemptions.

SECTION 7. Professional Licensing Training Pathway.
Notwithstanding any other provision of law, any individual age 16 or older actively pursuing education (e.g., enrolled in a relevant program) or employment in a profession may apply for and obtain, without fee, a "training practitioner's license" or equivalent apprentice/training permit in that profession from the relevant occupational licensing board.
The license must be renewed annually upon demonstration of continued pursuit (e.g., enrollment verification or employer letter). Boards shall issue such licenses without fee and may not impose age barriers beyond 16 for training pathways.
This applies to relevant chapters, including but not limited to those under Chapter 93B (Occupational Licensing Boards) and specific profession chapters (e.g., 83A, 90, 86A).

SECTION 8. Preemption and Supremacy.
This act preempts and supersedes any conflicting provision of local ordinance, rule, or policy, and any conflicting provision of the General Statutes to the extent of the conflict. Youth-owned businesses (including sibling-owned youth businesses) shall comply with general public safety, health, and sales tax laws (including collection and remittance if thresholds are met), but are not subject to the restrictions exempted herein.

SECTION 9. Conforming Amendments.
The Revisor of Statutes shall, within 12 months after the effective date of this act, review the General Statutes and make all necessary conforming amendments, recodifications, substitutions, technical corrections, and adjustments to harmonize existing provisions with the exemptions, preemptions, fee waivers, training pathways, sibling extensions, entity limitations, financial safeguards for minors under 16, and other requirements established by this act. This includes, but is not limited to, Chapters 33A, 48A, 57D, 66, 93B, 95, 105, 130A, 153A, 160A, 160D, 161, and any other relevant chapters. The Revisor may adjust statutory citations, terminology, cross-references, and organizational structure as needed to reflect the intent of this act without altering its substantive policy.

SECTION 10. Effective Date.
This act is effective 60 days after it becomes law (i.e., 60 days after the date the Governor signs it, it becomes law without signature, or the legislature overrides a veto, as provided in Article II, Section 19 of the North Carolina Constitution).
It applies to operations beginning on or after the first Monday of the summer following the effective date (for example, if the act becomes law in spring 2026, the application date would be the first Monday in June 2026).

SECTION 11. Severability Clause.
If any provision of this act or its application is held invalid, the remainder of the act and its application to other persons or circumstances shall not be affected.