Running Boston's Bureaucratic Marathon

8/7/2019 Running Boston's Bureaucratic Marathon

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Executive SummaryStarting a small business in Boston often turns into a regulatory endurance

test forwould-be entrepreneurs. The CityofBoston operates on the principle thatmore is better: more regulations, more separate requirements, more fees, moreagencies reviewing an application, more hearings, more paperwork. Caught up inthe process, Boston seems to have lost track of the purpose of their regulations:ensuring public health and safety and then allowingpeople to pursue their chosenprofessions and earn an honest living.

It is typical ofBoston that there are eight different officesthat offerassistanceat speeding the bureaucratic process, rather than actually eliminating unnecessaryrequirements. But no matter how hard government workers try to help, start-upbusinesses often face a convoluted, onerous and expensive regulatory process. Asthe body ofthis report demonstrates, the CityofBoston has created potent barriersto productive livelihoods, especially for those outside the economic mainstream.VEHICLESFOR mRE

Driving a taxi is an ideal first job for those who wish to enter the ranks ofthe employed. Itdoes not require formal education and should not require largefinancial resources. An entrepreneur can earn a living simply by working hard.Or at least it used to be that way. Boston has made many businesses-butespecially taxi driving-difficult to create, especially for those who areeconomically and socially disenfranchised.

With a cap of 1,565 on the number of taxi medallions it issues-a figurethat has remained virtually unchanged since 1934-the City of Boston throughthe Police Department's Hackney Division certainly does its part to keep low-income residents out of this occupation. Because of the government-createdscarcity, the cost of securing one of these precious government permits hasrisen to more than $100,OOO-a figure well out of range for the averageentrepreneur, never mind those at the bottom rung of the economic ladder tosuccess. The artificially low number of cab medallions has a number of illeffects: It drives up the cost of medallions, forces drivers to work too manyhours to make a living, causes service gaps in poor and minority areas, andreduces the friendliness of service.

In addition to capping the number of legal taxis that may operate, Bostonalso bans the use of jitney vans. Jitneys are privately owned vehicles, oftenserving minority communities. They operate along fixed routes for a flat feelike buses but stop anywhere along the route like taxicabs. Despite the factthat jitneys fill the service gap left by the few legal taxis and enjoy greatpopularity at grocery stores and neighborhood shopping areas, the City barsthese vital service providers from competing legally for customers.

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On the other hand, where the City has allowed open entry into thetransportation field-as it has with limousines-competition thrives, thecommunity is served and entrepreneurial opportunities are created.VENDING

Technically, Boston peddlers may only operate "Withinbusiness districts andmust move 200 yards after each sale. Downtown peddlers may work only between8 p.m. and midnight. An illustrative example ofwhat these industrious peoplemustgothrough to succeed was seen by one flowervendor who is featured in the body ofthis report. To improve her quality of life, she decided to sell flowers, but faced abevy ofproblems including harassing tickets because she did not move after everysale, run-ins "WithCitybureaucrats whobounced her from one officeto another in apaper chase for signatures, and threats from the City to revoke her license.CHILD CARE

Because caring for children requires kindness and common sense, but nothigher education, child care makes an ideal career for budding entrepreneurs-especially for single or stay-at-home mothers. Such a career allows them to keeptheir own children close to them as they care for a few others. And as cities likeBoston are required to move the poor off of welfare and into work, child care willprove particularly important.

Although Boston does not impose onerous educational and trainingrequirements on those who "Wishto provide child care in their home, it does imposethese requirements in the group child-care environment. Also, the City's intenseregulatory and zoning requirements makes child care a difficult field to enter.Mothers with limited resources, who should be in a goodposition to work as day-care providers, find it difficult to meet all the requirements, which includeapproximately $400 in start-up fees, zoningregulations that forecloseopportunitiesfor those who rent apartments, and detailed written plans on curriculum and childdevelopment that gowell beyond public health and safety concerns.

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COSMETOLOGY AND HAIRBRAIDINGEven more burdensome requirements are placed on occupations like

African hairbraiding. In Massachusetts, an African hairbraider must have acosmetology license, which requires 1,000 hours of training. (Compare this toMassachusetts' requirement that armed security guards take only 160 hours ofclasses.) Hairbraiders are trained in such areas as manicuring, skin andmakeup, permanent waves, "finger waves," "iron curls," haircuts, andhaircoloring. This training is required despite the fact that hairbraiders willnever use these skills. Not a single hour of hairbraiding is taught during the1,000 hours of class.

Zoning, of course, can be a major obstacle to operating a braiding salon.Unless the former occupant was also a hair salon, the business will have to gothrough a change of occupancy hearing. In addition, in-home establishments


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ContentsIntroduction 1

Getting Started . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Vehicles for Hire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Vending 7

Child Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

Cosmetology and Hairbraiding .12

Take-out Restaurants and Catering .14

In-home Businesses . . . . . . . . . . . . . . . . . . . . . . . . . . .15

Conclusion .16

Endnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17

Tables 19

Biography .25


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IntroductionIt is said that Boston is the only city where the streets can run parallel and

perpendicular at the same time. Boston's business climate presents a similar studyin contradictions. One survey rates it the nation's 15th best city forentrepreneurs; 1 another finds it's the sixth costliest city in which to do business.sIn a sense, both are true: Boston welcomes entrepreneurs, but it also makes lifedifficult for them. It is toward harmonizing the City's pro-entrepreneurialphilosophy with its regulatory reality that this report is directed.

Most businesspeople appear resigned to the notoriously high level of red tapeand bureaucracy in Boston. Both the State and the City have made some effortsto climi:I1ishthis reputation, but the efforts have been directed primarily to speedingthe bureaucratic process, rather than actually eliminating unnecessaryrequirements. Thus, both the State and City have created offices to help guideprospective entrepreneurs through the requisite maze; yet both continue tomaintain complex and cumbersome processes and requirements. Onebusinessperson's comment captures well the dichotomy: "Streamlining the processis a great idea. Now if only the city could rewrite some of those ancient zoninglaws."3 Similarly, Governor WilliamWeld's administration has pledged to reducethe number of regulations, but primarily has focused on outdated or duplicativeregulation, rather than barriers to entrepreneurship.f

Getting Started"The City of Boston does not have a good reputation of being an easy place to

do business," confessed the director of the Boston Office of Business Services,which was established in 1993.5 Mayor Thomas Menino helped to establish theBoston Empowerment Center, with a Small Business Administration-funded "onestop" information center. Both of these officesoffer "walk-iris" or appointments andgear themselves toward helping small businesses. They provide information andassistance in finding capital and sponsor entrepreneurship classes. Massachusettsalso will guarantee small business loans through the Capital Access Program andsupports lending with its "LowDoc" (low documentation} small business loanprogram. Italso provides guides towriting a business plan from the MassachusettsOfficeof Business Development and the Small Business Assistance Packet.Dana Berliner is a staff attorney at the Institute for Justice. Interviews and research for thisstudy were conducted by the author, by Howard Husock, Director of Case Studies at the John F .Kennedy School of Government at Harvard University and his research staff, and by Institute forJustice research attorney Colleen O'Brien and research assistant Lori Graham.Most entrepreneurs interviewed refused to be quoted by name, either because they operateillegally or because their business licenses or permits require discretionary approval bygovernment officials. Names are therefore rarely used.


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Anew small business seeking assistance can contact the Mayor's Office ofBusiness Services, the Department ofConsumer Affairs, the OfficeofMinority andWomen's Business, the Boston Empowerment Center, the U.S. Small BusinessAdministration, the Department of Inspectional Services, the City Clerk and CityCouncil members. Explains Mark Stevens, of the Boston Empowerment Center,"Webend over backwards to help businesses meet requirements." It is typical ofBoston that there are eight different officesthat might be able to offer assistance.That's a lot ofpeople to visit, and it can take trips to a number of officesbefore anentrepreneur can find the right person to provide help.

But the real problem is that no matter how hard government workers try tohelp, start-up businesses are oftenfacedwith a convoluted, onerous, and expensiveregulatory process. Starting even a one-person business can require visits tomultiple offices and a significant amount of money.v Starting a small businessoften turns into a regulatory endurance test. The only help for that is cutting backon the regulations themselves.

Boston operates on the principle that more is better: more regulations, moreseparate requirements, more fees, more agencies reviewing an application, morehearings, more paperwork. Caught up in the process, Boston seems to have losttrack of the purpose of their regulations: ensuring public health and safety andthen allowingpeople to pursue their chosen professions. The regulations, and theprocesses for conforming with them, have taken on a life of their own. Instead,Boston needs to take a step back and ask whether each regulation is narrowlytailored to serve public health and safety.

Vehicles for HireTAXIS

Itis a difficultand dangerous occupation," but driving a taxicab traditionallyhas been one of the ways that low-incomepersons earn money for themselves andtheir families. However, taxi driving is becoming a less accessible form of self-employment, and the City of Boston certainly does its part to keep low-incomeresidents out of this occupation.

Taxi drivers must comply with a number of regulatory requirements. Theymust obtain a hackney license, which costs $50, a copy of the required drivingrecord ($5), annual taxi plates ($45), and an annual license renewal ($12). Toacquire a license, cabbies must also receive 12hours of training (overthree nights).Taxi owners also pay for insurance, which runs about $6,000 a year, airport fees,and the price of their cab. Finally, taxis are inspected twice per year.8

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But the most formidable barrier is the limitBoston has placed on the numberof taxi permits (known as medallions.) The Police Commissioner issues themedallions, which are necessary to operate taxis in Boston. There are 1,565medallions issued to date in Boston. This number has remained virtuallyunchanged since 1934. Despite orders from the Department and a court toincrease the number ofmedallions, the Commissioner has declined to issue more.A statutory change in 1990 increased the limit on the number ofmedallions from1,525 to 1,825. The Commissioner has only issued 40 new permits, all forhandicapped accessible cabs. (Anonymousreports indicate that the handicapped-accessible cabs have been refusing to pick up handicapped passengers.)

In 1988, entrepreneur Robert K. M. Lynch applied for a medallion. Theapplication was denied because the Hackney Division of the Boston PoliceDepartment had already distributed the maximum of 1,525 medallions. Lynchappealed, and after 20 days ofhearings, the Department concluded that 300 to 500additional medallions would be an absolute minimum number to meet the publicconvenience and necessity standard. Accordingly,the Department ordered that themaximum number ofmedallions be raised to 1,825 effectiveimmediately, to 1,925within the following 18months, and to 2,025 a year after that. The increase wasopposed by the Boston Neighborhood TaxiAssociation and the Cityof Boston CabAssociation, both of which urged the courts to adopt a farfetched reading of thestatute which contradicted its plain language and to keep the 1,525 cap. Theappeals court agreed that the Department had the authority to increase thestatutory limit, but it rejected its plan of incremental raises. Lynch never got hismedallion, and the Boston residents never got the new cabs they need. In June of1996; the Commission was ordered by the Massachusetts Superior Court to issuethe remaining 260 medallions.? as of this writing, it has yet to comply.

The artificially low number of cab medallions has a number of illeffects: Itdrives .up the cost ofmedallions, forces drivers to work too many hours to make aliving, causes service gaps in poor and minority areas, and reduces the friendlinessof service. Because there are only 1,565licenses available, it is expensive to obtainthe right to own a taxi. New taxi owners cannot purchase licenses from the Cityand instead must buy them from previous owners. Despite the fact that the Cityof Boston today would charge $175 to issue a new medallion, the street cost of amedallion is around $105,000,10 well outside the means of most entrepreneurs,especially those of modest means. That is one main reason why only about 300drivers actually own their medallions. Instead of driving for themselves, mostdrivers must lease a medallion, at a cost of up to $545 per week.U Prices varyslightly depending on the cab company, individual owner, or radio equipment.

Usually, cab drivers who lease their vehicles and medallions must workextremely long hours to make any profit at all. "More than 100 drivers live out oftheir trunks. . .. And hundreds, perhaps thousands, work around the clock,napping in their taxis during the wee hours of the morning in order to cover thehigh cost of renting a medallion." The Committee to Restore the Boston TaxiIndustry estimated in 1992 that about 1,500 cabbies work around the clock.

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Recognizing the conditions under which medallion renters subsist, the City hasproposed delaying a scheduled increase in rental rates. 14

In addition to the poor treatment of drivers, certain neighborhoods continueto receive substandard cab service. When black City Councillor Bruce Bollingwasrefused a ride to predominantly minorityRoxbury in 1992 by a white cab driver, theGlobe did an investigation into taxi-driving practices and exposed a dual system ofservice. One company in particular was blatant about setting up separate andunequal service for such minority neighborhoods as Roxbury, Dorchester andMattapan. Apparently, the company had two customer phone numbers--one for"Black Boston" and one for the rest of the City.IS The Globe investigation foundthat calls to the black line frequently went unanswered, and response times,especially during rush hour, were considerably longer than for the other line.l6Because they have a lock on the market with no fear of competition, existingcompanies find no need to improve their service. And would-be minority driverswho might like to start up a cab service in communities that are now ignored mustwait indefinitely. The PoliceDepartment did not seem to investigate response timesor the availability of cabs for those calls.

GYPSY CABSIllegal taxis fill a gap in service left by the legal taxis. In Roxbury and

Dorchester, gypsy cabs have operated as a common and accepted means oftransportation for at least 15 years. They enjoy great popularity at grocery storesand neighborhood shopping areas. For the most part, the operators are retired menwho use their own cars and who need the extra cash to get by. Some drivers haveother jobs and then drive part-time to increase their families' income. They oftenknow their clients and develop long-standing relationships with them. Theshopkeepers oftenknow the drivers and will recommend them to customers. Gypsycabs service neighborhoods that other cab drivers refuse, and without the pressureto make up for the cost of leasing a medallion, they can take more time with theircustomers as well. One customer explained, "Theydo things like help you in yourhome with your bags, especially ifyou're elderly. That's something cabs just don'tdo anymore."!" Fares seem to vary; sometimes they cost roughly the same aslicensed taxis, and sometimes less.

Operation of an illegal taxi is a misdemeanor punishable by arrest and a $50fme. Usually, the police do not issue tickets unless there is a complaint. And storesand customers usually do not complain, because the gypsy cabs offera service thatis otherwise unavailable. Nevertheless, there are serious disadvantages tooperating an illegal business. Drivers cannot advertise or secure loans, and thereis always the risk of criminal enforcement. One driver admitted that he wouldprefer to be licensed but could not come close to affording the cost of leasing orpurchasing a medallion.

Other transportation services in the Boston area operate without any

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government-imposed ceiling on their numbers of cars or vans. Instead, thepublic need for service determines the number of operators. By this standard,more taxis certainly are needed. In fact, the only people who seem to believe thattaxi service is adequate are the medallion owners. Once they have invested inthe system, they do not want to see the value of the medallion go down or losefares to other drivers. The impulse to squelch competition seems to be acommon reaction once businesses become established. During London's firstrecorded taxi war, in 1636, taxi owners routinely got the State to limit theircompetition. "Sparked by the resentment of Thames water taxis at growingcompetition from coaches on land, it led to a proclamation from King Charles Irestricting the number of coaches to 50. Lucky coachmen were happy.Watermen were happy. Customers got gypped."18 Keeping out newcomers isbad for entrepreneurs and bad for consumers. And Boston should not wield itspower to advance private anti-competitive interests.

LIMOUSINES

Fortunately, the Boston Hackney Division does not license or cap thenumber of limousines. The limousine business is therefore flourishing in theBoston area. The number of companies offering limousine or sedan serviceat Logan International Airport has skyrocketed from 30 a decade ago toalmost 700 today. Limos can be reserved ahead of time, but cannot be hailedfrom the curb or airport. Predictably, the taxicab industry's first response,rather than calling for their own deregulation, was to demand that regulatorsquash the upstarts by controlling their numbers, rates and airport pickups. 19

Although the regulatory requirements for limousines are somewhatcostly, they are dwarfed by the cost of owning and operating a taxi.Limousine operators must obtain livery license plates from theMassachusetts Registry of Motor Vehicles, and drivers must obtain a "classthree" public driver's license. If a limousine driver intends to pick upcustomers at the airport, he must secure a permit from MassPort, whichincludes a fairly complicated set of forms and a monthly fee. Insurance of $1million per car is required to obtain the livery license. The total cost comesto more than $5,300, but since no certificate of public convenience andnecessity is required, it is still nearly $100,000 less than the cost of owninga taxi. According to the owner of one smaller limousine company, owners anddrivers don't get rich in the limousine business; the cars and the insuranceare expensive. But you can still make a living. "Youjust gotta get out thereand hustle," he explained.

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BUSES

The moveis on to privatize Boston's costly bus system. A recent study bypublic transportation consultants found that the MBTAbus system is the secondmost costly bus operation in the country. Massachusetts TransportationSecretary James Kerasiotes said privatization could cut the costs of running abus from $95 to $65 an hour. San Diego,Baltimore, Denver, Dallas, Phoenix,LasVegasand Indianapolis have allprivatizedparts of their bus systems. Privatebus services, fares, and routes will still be regulated by the City.20 The City isaccepting bids but has encountered significant resistance from the public bussystem and unionized drivers.21

VAN SERVICES/JITNEYS

To prevent private companies from competing with the public busmonopoly, van services are more tightly regulated than limousines. Vanservices are licensed primarily by Massachusetts, although some shuttleservices must also obtain a jitney license from the City. Obtaining theMassachusetts license requires numerous fees, a public hearing, and a lot oftime and energy. Apotential company must get its route approved and haveits license approved by the City Council and signed by the Mayor. Touristbuses must get a charter license with a "sightseeing endorsement." As withlimousines, the airport requires a special permit to pick up passengers there.

City of Boston jitney licenses are issued to shuttle buses which have aset route and do not pick up passengers en route. Applications are filed inthe City Clerk's office and must be approved by the City Council. The cost ofa jitney license is $250, with a $100 renewal fee each year. Most jitneylicenses are given to shuttle bus companies transporting people to and fromthe airport. Aniche in the business has grown from transporting hotel maidsto and from work. Jitneys are prohibited from competing with buses.

The owner of one new service found this process exhausting. Shehad an idea for a tour bus service with an original theme. She wanted tooffer both charter tours and scheduled tours starting from a fixedlocation. To obtain her license, she was required to have a hearing, withsponsors. At the hearing, she declared the purpose of her business andidentified other businesses with the same routes or type of tour. Anopportunity was given for other businesses to object. She received acharter license with a sightseeing endorsement. Although she hadbelieved the hearing would result in both a charter license and a licenseto have a regular route, she discovered that she would have to go througha second hearing to have the regular route. There was a fee for theapplication and a separate fee for the hearing.

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Rather than go through the process again, she decided to make furtherinquiries. After a year, she is still unable to determine exactly what she needs todo to provide her service, and she often gets contradictory information. She hasasked the police, the City Council, and the Massachusetts Department of PublicUtilities. The police do not know if she needs a sightseeing license from them or ifshe needs a permit from the CityCouncil. They appear not to know about the jitneylicense at all, and she is not certain if she needs one. Because she could not figureout the procedure, she simply does not offerscheduled service. "It's so convoluted.There's so many different variables." Tohave the charter service, she has a charterlicense with a sightseeing endorsement, a livery license, a bond for $1 million(approximate cost $1,000), insurance for $1 million (approximately $5,000 pervehicle), Department of Public Utilities licenses for drivers, special training for thedrivers, psychological examination for drivers, and a special endorsement from theairport. "Licensingat Massportis a maze," she added.

Licensing for van services requires approval by so many different agenciesthat there are inevitable problems. Depending on the service, approval must comefrom the Massachusetts Department of Public Utilities, competitor companies, theCity Council, the PoliceDepartment, the City Clerk, and the Mayor. Asystemwithfewer requirements, as well as the elimination of the need for a public hearing,would be a big improvement.

VendingLow-incomeresidents historically have been able to vend goods on the streetas a first step on the economic ladder. Vending does not require formal education

and should not require large financial resources ..An entrepreneur can earn a livingsimply by working hard. Or at least it used to be that way.

It is relatively easy to become a peddler in Massachusetts, but the strictregulations mean that successful peddlers usually violate the law in some way. Thewould-be seller must obtain a character reference from the PoliceDepartment andpay $62 to obtain a Massachusetts Hawkers and Peddlers License. Boston,however, is not happy with the State licensing procedure and tries to limit vendingas much as possible. Technically, they must move 200 yards after each sale.Peddlers may operate only inbusiness areas, and only between the hours of 8 p.m.and midnight when downtown.22 Several peddlers of clothing accessories inRoxbury found that selling hats and shoes out of their cars served as a means toearn enough money to open a retail store. They also found that the limited hoursand the requirement ofmoving after each sale were rarely enforced.

Police enforcement of vending laws happens rarely, but when it does it canresult in substantial fines or arrest, and it can be devastating to business. Oneemployee at the Boston Department of PublicWorks stated, "weare on a constant

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vigil" against illegalvending and alsonoted that much ofthe problem stemmed fromimmigrants who think they can sell inBoston just because they can in their owncountries. In someplaces, fmesare imposed toprotect established businesses. Forexample, there are six storefront florists inEast Boston. Street flowerpeddlers cropup to compete on the big flowerholidays: Mother's Day, Valentines'Day, Easter;and Christmas. Because these sellers cannot obtain legal permits, they are fined,usually at the behest of their fee-remitting, non-transient counterparts.

Most pushcarts, newsstands, and flower vendors therefore find itpreferable to be classified as stationary vendors. Unfortunately, it is much moredifficult to obtain a stationary vending permit. Stationary vending requires apermit by Boston's Public Works Department, for the storage or sale ofmerchandise on a city street. The cost of the permit is $15 per square foot inthe downtown area, $11 per square foot outside of downtown. Public Worksissues the permit because the stands are actually occupying the sidewalk, whichis within the purview of Public Works. If the stand is located in front ofanyone'sproperty, the vendor needs yearly written consent to occupy the space by theowner of the property and the store or entity which occupies the first floor of theproperty. Stationary vendors also need a recommendation by a communityrelations police officer and then approval of the captain of the district policeprecinct. Finally, they are required to carry $500,000 in insurance, which costsbetween $200 and $350 per year.

The vending regulations can cause major problems for a small business.One woman decided she wanted to become a flower vendor to be moreindependent and improve her quality of life. She picked up her peddler'slicense form, took it to the police headquarters and the local police station, thenback to the State office for the license. For a few years, she operated withoutproblem. Then, a new flower shop moved into the neighborhood. This flowershop began calling the police, who would then issue tickets ($50 each) becauseshe did not move her cart after every sale. Refusing to pay the tickets, shecollected 1,000 signatures of customers and local businesses supporting herright to remain on that corner and presented it to the City Council. Afteranother period of quiet" the problems began again. Eventually, one of thebusinesses agreed to sign for her to operate in front of the business. Shepicked up her form from the Department of Public Works, presented herpictures of the cart and space, went to the local police station to secure asignature, then to the downtown police headquarters, then to get the businesssignature and insurance, then back to Public Works. Each year, she had to geteach of these signatures again. Yet she continued to have problems. One year,the City issued the license, then called her back to say that it was consideringrevoking it, because she was operating on City property. She agreed to pay ahigher license fee and was able to continue. Another year, the personnelchanged at the local police department, and they refused to sign her form.Again, she was able to argue them into it. Although she continued operatingfor 12 years, putting herself through school and earning a reasonable income,she says of the process, "it was a constant battle."

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Additional requirements apply depending on the type of goods sold and thelocation. A$100 health permit from the Health Divisionof the Inspectional ServicesDepartment is needed if foodwill be sold. The base ofoperations for the productionof the food, if it is not prepared on premises, must also have a separate permit. Inaddition, if food, including hot dogs, will be prepared on the premises, a vendor isrequired to take a 15 hour "foodmanagers" course under the approval ofISD andthe National Restaurant Association. The cost of the course is $120 (plus $50 forthe book and $20 for the test). That's nearly $300 in addition to at least $300 forlicensing fees and insurance. For an entrepreneur, the expense can be prohibitive.

During the summers, retail stores in Roxbury often set up tables in front oftheir shops. During the summer of 1995, however, inspectors forced everyone onthe street to remove their tables, because they did not have the proper permits.What goal was accomplished by this action? Consumers were not protected.Streets had not been blocked. One shop owner decided to get a permit for vendingoutside her shop. She wished to sell hot dogs and snow cones. In order to sell thehot dogs, she was required to take the foodhandlers course and pay approximately$300 in various fees. Finally, an inspector examined her cart. Although she wasable to comply with all of these regulations, the process was costly and time-consuming. Most of the other stores that had set up tables did not bother to gothrough the approval process and simply stopped selling goods outside. But sellingtennis shoes or purses presents no potential health hazard to the public. A simplerequirement that the sidewalks be clear could suffice for the regulation of vendingin front of stores.

There are further rules and fees in certain areas of the City. Vending isprohibited in certain areas. For example, no food pushcarts are permitted by thewaterfront. Other areas have pushcart "programs" administered by privateassociations. For example, the Downtown Crossing Association (DCA)administerspushcart permits for the downtown area and also controls the number of permitsissued in this area. Permits are given for certain spots within Downtown, and thenumber of spots and their locations are controlled by the Association. Currentlythe DCAis issuing between 75-80 locational permits. Pushcart vendors still needa permit frompublic works but, inaddition, must pay various fees to the DCA. TheDCAcharges a management fee between $100 and 1,000 a month depending onthe location ofthe pushcart. The DCAalso charges a $2 per day promotion fee anda $1 storage fee.

Selling merchandise on City park property is a whole different story. Thepushcart program for the Public Garden and Common (two downtown parks) isadministered by the Boys and Girls Club under a contract with the City's ParksDepartment. Apparently, a trust was created for the maintenance of the parkswhen the parks were constructed around 100years ago which stipulated that anyproceeds from the sale of goods within the park must benefit youth activity. Eachspace's value is assessed and the price of the permit is based on this value. Permitprices range from $200 to $1,000 per month. The assessment includes what willbe sold at the location and where the space is located.

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Child CareThe increasing demand for child care makes it an ideal career for a budding

entrepreneur. Moreover,caring for children requires kindness and common sense,but not higher education. These qualities should make it one of the easier fields toenter. It also permits parents to combine caring for their own children with caringfor a fewothers. Intense regulation of child care, however, makes it a difficult fieldto enter. Mothers with limited resources, who should be in a goodposition to workas day-care providers, fmd it difficult to meet all the requirements.

The Massachusetts OfficeofChildren issues the permits for day-care centers.Day-care centers are divided into two types: family day care and group day care.Licenses must be renewed every three years. Violation of the licensingrequirements can result in a fine of$1,000 and sixmonths in prison. Providers arerequired to take a three-hour State orientation class covering topics such asbusiness management. At the time of yearly renewal, youth providers must havetaken at least fivehours of training in caring for young children. There also areseveral health and reference requirements.

FAMILY DAY CARE

Family day care is provided in a private home and has a number ofadvantages over larger day-care environments. It is usually less expensive andtends to be open on federal and State holidays, while group day care often closes.Furthermore, family day-care providers are often more lenient about parentspicking up their children late or having variations in their schedules. Although lessextensive than those governing group daycare, the regulations governing family daycare are still quite detailed. No more than six children and not more than twochildren who are under two years old can be cared for at anyone time.23 The limitson the numbers include the provider's own children. The home must be owner-occupied. There must be 225 square feet, two exits, and approved ventilation andheating. There is no building safety inspection by the Department of InspectionalServices, but there is an inspection by the Officeof Children. A licensee may besubject to inspection at any time by someone from the Officefor Children "with orwithout notice to the program." The house must also be properly zoned for such ause and, unlike many cities, family day care is permitted as an accessory use of ahome in residential areas. Providers must submit a written plan to the OfficeofChildren outlining how they will provide for the developmental needs of thechildren. The activities provided must contain "a range of learning experiences forthe child." The permit costs a steep $175.

There are ongoing training requirements and an assortment of other detailedrules as well. One family day-care provider explained, ''They keep throwing newthings at us. I could see if it was for benefits to the children, but it's not. It's justmore red tape to get the same answers." Both the cost and the sheer number of

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requirements and paperwork can be daunting. The director of one communityprogram stated bluntly, "Basically, the English-speaking day cares complywith therequirements. The others, the newcomers, don't."

In 1995, Governor Weld proposed an ambitious program designed toencourage young mothers to operate small day-care facilities out of theirhomes. Unfortunately the program failed and has been mostly canceled. Theproblem was in finding welfare mothers both eligible and eager to enter thehighly-regulated child-care industry.24

"It's very disappointing," said Linda Marshall, a 36-year-old mother who hadhoped tojoin the program before it was canceled in Bristol County. ''Thiswould beperfect for me. I could get offwelfare, and I wouldn't need child care. It would fitmy needs all around." ''We were excited about this," said Constance Doty,director of the jobs and community servicefor the City ofBoston. "But the morewelooked at it, the more we said, 'Hmmmm. Day care is a tough, tough business."

In someways, the regulation of familyday care in Boston is better than othercities. Unlike some states, the educational requirements for providers are notsteep: Massachusetts requires only about 15 hours of class. And unlike somecities, Boston does not require a zoning hearing for family day-care business. Themain problems for familyday-care providers are the costs-starting up runs around$400 in fees-and meeting the building requirements.

GROUP DAY CARE

Educational requirements for day-care providers and building requirementsbecome more stringent for group day care than family day care. There is a limiton the number of children depending on the space available, as well a child-to-teacher ratio that must be satisfied. Group providers must be at least 18;assistants must be 16 or older. Teachers must have three credits in childdevelopment and nine months of experience. Lead teachers must have 12 creditsand between nine and 36 months of experience, depending on the amount ofcollege. The State may require a director, with higher educational requirements,depending on the size of the center.

Extensive regulations detail staff ratios, educational requirements, child-careexperience, building layout, plumbing, program activities, materials, snacks, and,of course, paperwork. There are separate regulations for before- and after-schoolprograms. Group day care must be zoned properly, and, unlike familyday care, itis usually a conditional use. The would-be provider must go through a publicnotice and hearing, which can cost between $100 and $150. And the City'sInspectional Services Department will inspect for compliance with a variety ofbuilding codes. Group day-care licenses cost $150 for centers with less than 39children, $250 formore than 39 children.

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The most difficult problem, by all accounts, is the extensive requirementsfor the building facilities in which child care is held. The housing stock inBoston is relatively old and often does not conform to the buildingrequirements, in terms of exits, stairs, and plumbing. "It's hard if you arepoor, live in a poor neighborhood, and live in poor housing stock," explainsAlma Finneran, Director ofDay Care Services at Action for Boston CommunityDevelopment. Many providers cannot afford the costs of renovating theirhouse; one estimated it would cost her $75,000 to change from a family day-care home to a group day-care center. After a year of meetings and hearings,she abandoned the plan.

The need for affordable day care will become particularly acute aswelfare reform laws take effect. Women seeking work will need day care fortheir children, and day care also may provide a good business opportunityfor women with children. Although the State has a legitimate interest inprotecting children, it could also relax some of the regulations withouthaving a negative impact. The educational and training requirements forproviders seem excessive, as do the limits on the number of children under10. And a change in the zoning code would eliminate the need for a costlyand daunting hearing.

Cosmetology and HairbraidingNatural hairstyles are becoming increasingly popular among African-

American women. Weaving natural or synthetic hair with the client's ownhair, African hairbraiders braid, lock, and twist hair into artistic and oftenelaborate styles. Braiders shun the use of chemical and electrical processing.Most braiders started learning to braid as children and acquire more skillsfrom family and friends. For a number of reasons, braiders often choose tooperate professionally out of their homes. Because braiding takes a long time,it is often more comfortable to work at home.26 Also the licensingrequirements for performing African hairbraiding and for operating a saloncan be prohibitively expensive--staying at home is necessary to avoidregulatory scrutiny.

African hairbraiders in Massachusetts must have a cosmetology licensethat requires 1,000 hours of training. (Compare this to Massachusetts'requirement that armed security guards must take only 160 hours of classes.)Someone who completes the six-month beauty school course and then passesoral, written, and practical exams may become registered as an "operator."(Cosmetology school in Boston costs between $5,000 and $8,000;27 the stateboard test costs $89; and the Type 2 license costs $50, renewable every twoyears.) Operators are beauty interns, who may become fully licensedcosmetologists after two years of practice under a registered "Type 1"

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cosmetologist. Although manicuring and skin aestheticians have separate,less onerous, licensing requirements, African hairbraiding still requires ageneral cosmetology license. 28

Thus, a hairbraider must learn manicuring, skin and makeup,permanent waves, "finger waves," "iron curls," haircuts, and haircoloring, eventhough she will never use these skills as a hairbraider. On the other hand,not a single hour of hairbraidingis taught during the 1,000 hours of class. Ofthe 1,000 required hours, at most 225 might be useful to a braider.29

To operate a hair salon, the cosmetologist is required to have a Type 1 licensewhich means that she already has had an operator's license for two years, andduring that time she has been under the supervision full-time of a person whoalready has a Type 1 license. .The cost is $30 for a Type 1 license, and it isrenewable every two years. Salons must have their electrical wiring and plumbingapproved by a wires and plumbing inspector. The owner of one hair salonsuccessfully navigated the process but says that "dealingwith the inspection peoplewas the hardest part." Theymissed appointments, forced her to change the type oftoilet three times, and required various minor changes to give her a permit foroccupancy ofthe building.

For at-home salons, a cosmetologist must own the residence in which theshop is located. She is required as well to have a Type 1license. The street or areamust be zoned properly for this type of business and the shop must be located ineither the first floor or the basement. The shop may not be located in a portion ofthe house where it is necessary to walk through other portions of the house to getto the shop. Entrance to the shop can orily be located in the front or side of thehouse and must be visible to whomever is dropping someone off for anappointment. Anydoors from the salon to the house must be locked and not used.There must be a shampoo sink and one lavatory (in or near the salon room). Anin-home shop license is $50, renewable everytwo years.

Zoning, of course, can be a major obstacle for opening a hair salon oroperating an in-home one. Uriless the former occupant was also a hair salon, thesalon will have to go through a change of occupancy hearing. In-home salons willalmost certainly require a variance hearing, since barbering and beauty businessesare generally prohibited in residential areas. At the very least, a conditional usehearing will be necessary. Hearings are time-consuming, expensive, and can becapricious. Awould-be hairdresser or braider could endure the entire process andeasily be denied.

At one point, Governor Weld's administration proposed a radical downsizingof the number ofState professional registration boards, including the elimination ofthe Board ofCosmetology. Nodownsizing has been implemented, and the Board ofCosmetology continues to impose senseless rules on the haircare providers ofMassachusetts. The licensing requirements for African hairbraiders bear norelationship to public health or safety and serve orilyto limit competition. As one

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licensed braider explains, "If you have to get a license, it will control the number ofbraiding shops. Ifyou don't, then anyone can open up a braiding shop."

Massachusetts' rules have ahnost no relationship to public health or safety.These concerns could be answered by a sanitation inspection and an insurancerequirement. At the very most, the State could require a braider to pass acompetency exam, without regard to how the competencywas obtained. Elaborateplumbing and building design requirements are unnecessary, and expensiveeducational requirements serve only to protect already-licensed cosmetologistsfrom competition. Finally,hairbraiders should not be required to spend 800 hoursstudying services they will not use.

Take-out Restaurants and CateringMost entrepreneurs find the licensing requirements for take-out restaurants

and catering to be difficult. For the inexperienced, a successful journey throughthe approval process depends on luck--Iuck in finding the right building and luckin finding a helpful officialas a guide. A comparison of the recent experiences oftwo entrepreneurs shows how this process works.

When Glynn Lloyd and his partners decided to open City Fresh cateringcompany, they found a location and then began to acquire their permits. Theywere lucky. Without realizing they were avoiding the usual need to go through achange of occupancy hearing, they happened to pick a location that had been adeli. Because they were on a certain time-frame, and they were already payingrent, the hearing could have posed a real problem. Their location was locatedbelow a residential unit, which did not meet the fire code. In order to obtain theirpermits, the whole building needed to be brought up to code. Again, they werelucky. The other inhabitant of the building compliedwith the fire code within thetime that was necessary for their company to start operations. A supervisor fromInspectional Services walked through the facility and told them everything theyneeded to correct. Afterthat, their plumbing, electrical, building structure, health,and fire inspections went without a hitch. They obtained the appropriate foodpermits, and they opened for business. Although Lloydbelieves it would be easierthe second time around, he found City and State officials to be "accessible"throughout the process.

When Bonnie Steele decided to open a small restaurant, and catering andtake-out establishment, she also found a location and then began to acquirepermits. However,unlike Lloyd, she was not lucky. She did not happen to find alocation that had been a food establishment before. She therefore applied for achange of occupancy. In practice, change of occupancy permits are automaticallydenied for take-out restaurants downtown, so a public hearing was required. Sincethe change of occupancy is not always granted, she hired a lawyer at a cost of

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$2,500 to assist at the hearing. Architectural plans for the application cost another$1,000. In comparison, the cost of the application and hearing (around $100) wasminor. Although her permit was granted, it took four months, during which timeshe had to pay rent, before her change of occupancy came through. She had towait for the occupancy permit to even begin applying for the building permits.She had no trouble with the plumbing, electrical, fire, and building safetyinspections. However, there was an issue between the department dealing withhandicap access and the historical preservation board. Her building is classifiedas historical, and it has a small step at the entrance. Another hearing wasrequired. And yet a third hearing was required to obtain her "common victualler'slicense," permitting her to serve food. Each hearing and application involved afee, but the cost in time and stress was much greater. Ultimately, she obtainedher occupancy and building permits, health department approval, commonvictualler's license, food handling permit, and entertainment license to playaradio at the business. She opened eight months ago and business is booming.Of the process, however, she says, "It was just awful."

In-home BusinessesAs a practical matter, approval for home-based businesses is almost

impossible to obtain, due not to the fault of the owner, but to concern over thingslike traffic and noise, said a spokesperson for the Boston Chamber of Commerce."Ifyour business hasn't been around since like 1920, forget it." Zoning permits areoften denied because of fear of the effect on parking. To obtain a permit for an in-home business, one must appear before the neighborhood council. Appeals aremade before the Boston Zoning Commission, which invariably follows therecommendation ofthe local council. Toaccommodate the coming interest in homebusinesses, Bostonwill have to modify its zoning policies.

Although in-home businesses currently make up a relatively small percentageof businesses in Boston, their number and popularity are on the rise. The BostonEmpowerment Center (BEC)caters to just such business people. The averagevisitor at the new BEC is a single mother who wants to open a home-basedbusiness and take care ofher children at horne. With the expense of day care, andthe schedule flexibilityofworking at home, home businesses are "the wave of thefuture," according to Mark Stevens, program manager for the BEC.

Boston is trying to accommodate this change, but not entirely succeeding.Home professional officesand businesses with no non-resident employees and no"merchandise trading" are generally permitted. However, every other type ofbusiness requires a zoning hearing, either for a conditional use permit or avariance. Conditional uses are easier to obtain and less expensive. Both are time-consuming and often denied.

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ConclusionBoston and Massachusetts have been making efforts in recent years to

become more hospitable to small business. But up until now, the changes havebeen in assisting small businesses with the regulatory process and with obtainingcapital. However, to allow entrepreneurs to flourish, government must actuallyremove some of the regulatory barriers. As in many cities, the worst problems forbusinesses come in the form of building requirements and approval processes.Obtaining proper zoning, building permits, and permits to occupy public propertycause the greatest cost and difficulty for would-be entrepreneurs. The other majorbarrier lies in the sheer number of regulatory approvals necessary to startbusinesses. Many businesspeople interviewed in the course of this study were notaccurately or fully informed about the requirements that applied to their business,simply because there were so many different regulations to consider. Some timelyand appropriate reforms would be:

1. Remove excessive educational and training requirements from thefield of cosmetology.2. Remove arbitrary cap on taxi medallions and phase ina market

system similar to limousines.3. Remove extra layers of bureaucracy. Van services and vending

require approvals from too many sources.4. Dramatically reform the zoning process to reduce the need for

hearings. Changes of occupancy within a commercial zone should beroutinely approved, and the number of commercial and accessoryuses permitted as of right should be increased.

5. Remove pointless licenses, permits, and requirements. There is noneed for a fortuneteller's license, a billiard license, a non-liveentertainment license, a milk permit, or a separate entrance to ahome hair salon, to name a few.

6. Evaluate all regulations and remove or reform any that are notnarrowly tailored to fulfill a legitimate governmental objective withoutunduly hampering enterprise.

In order to allow entrepreneurs to thrive in Boston, City officials need to shiftto a presumption in favor of economic liberty, instead of a presumption in favor ofregulation. Now, the City often appears to regulate just for the sake of regulating,and there is little connection. between the goal of public health and safety and theexhaustive occupational and building rules. Only a close fit between health andsafety ends and the means chosen by government justifies erecting regulatorybarriers to entrepreneurship.

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17 Quoted in Luz Delgado, "Gypsy Cabs Fill a Need in Neighborhood," Boston Globe,Jan. 10. 1993. at AI.

18 Jeff Jacoby, "Break open the taxicab monopoly," Boston Globe.Tuesday, December5. 1995. quoting The Economist.

19 Janet Novack. "Regulation at its Worst," Forbes, July 11, 1988. at 48.20 Associated Press, 'T Bus Privatization in Works: All 159 Routes to be Auctioned,"

Patriot Ledger, April 1. 1996. at 5.21 "TUnion Ads Blast Privatization," Boston Globe. Oct. 12, 1996, at B7.22 Interview with Anne McNeil.Department of Public Works, Oct. 10, 1996.23 Under the current rules. three children under the age of two can be provided for at

one time provided that one of them can walk unassisted. New rules will permitcertain family day-care services to provide care for up to ten children. Therequirements for these services have not been established yet.

24 Michael Grunwald, "Day-care program falls short of goals; Few welfare mothersstarting own firms." Boston Globe, Feb. 26, 1996. at 1.

25 Quoted in Ibid.26 Pamela Reynolds, "Homespun Hair; Kitchen salons surge in popularity as blackwomen seek out natural look," Boston Globe, Oct. 25. 1995. at 71.

27 Free cosmetology training is available at the local community college part-time. butthe course takes two years.28 Manicurists study for 100hours, and aesthetictans (skin and makeup spectaltsts) for

300.29 These include Sanitation (25 hours), Ethics (25). Wigs and Scalp Treatments (50),Tests. Sterilization, Hygiene and Anatomy (125). However, since hatrbraidersgenerally do not use wigs and since most of the testing hours pertain to skills notused by braiders, the number of useful hours is probably closer to 150.

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TaxisPermit Required Permit Cost Issuing Office RenewallExpirationClass D license from $33.75 Massachusetts Four yearsMassachusetts Registry ofMotor

VehiclesMedallion (a) $105,000 on (a) Previous owner (a) One-time(a) Purchase from open market (b) Current owner (b) One week/24 hoursmarket (b) $5451 week; (c) Boston Police (c)One-time(b) Rent from owner $115124 hours Commissioner/ (d)One-time(c)Purchase from city

if available (c) $175 City ofBostonCd)If unavailable (d) Hearing cost (d) Massachusetts

from city, plus appeal if D.P.U.requires necessarycertificate ofpublicconvenience andnecessity

Hackney license (a) $50 City ofBoston (a) One-time(b) 12 renewal Hackney Division of (b) One year(c) 12hours training the Police (c) One yearCd)$5 required Departmentdriving records (d) One year

Insurance Approx, $6000 Private One yearInspection Covered in $175 fee Private Six months

when buy medallion;varies (minimal e.g.:$5 to $15)

Massport fees $1.30/ trip to airport Massachusetts Port Per tripAuthority

Taxi plates $45 RMV One year

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LimousinesPermit Required Permit Cost Issuing Office RenewallExpirationState Class D $33.75 Massachusetts Four yearsLicense Registry ofMotor

VehiclesLimousine business $100 application I Massach usetts One-time/registration $40per vehicle D.P.U.; Department One year

of TransportationLivery plates $80 Massachusetts Two years

Registry ofMotorVehicles

Insurance Approx, $5000 Private One yearMassport permit $75 application fee Massachusetts Port One year and per-trip

plus $1.30 per trip AuthorityInspection $60 original! Transportation One-time/

$40 annual renewal Department of One yearMassachusettsD.P.U.

C t V nJJ't Bommu er a 1nev usesPermit Required Permit Cost Issuing Office RenewallExpirationCharter license (a) and (b) all in Transportation (a) and (b) = One-time(a)Hearing $100 fee Department of (c)One year(b) Application (c) $40 Massachusetts(c)Per vehicle fee D.P.U.Livery license $80 Registry ofMotor Two years

VehiclesJitney license $250 first year Boston. City Clerk's One-time/One year

$100 renewal officeInsurance Approx. $5,000 Private One yearMassport license $75 application fee Massachusetts Port One year and per-trip(ifservice airport). plus $1.30 per trip Authority

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Transient vendors, Hawkers, Peddlers and Vendors (depending on items sold)Permit Required Permit Cost Issuing Office RenewallExpirationHawker! Peddler: (a) $500 bond Massachusetts Executive Both = One year(a) State bond (b) $55 to $62 OfficeofConsumer Affairs,(b) Hawkers' and peddlers' Division of Standardslicense

Ifvendor oncity park $200 to $1,000 Boys and Girls Club! City One monthproperty Parks DepartmentIf food: (a) $100 (a) Health Division of (a) One year(a) Health permit (b) $120, $50, and Inspectional Services (b) Four years, one-(b) Food managers course, $20 Department time, and one-time

book and test (c) $135 (b) ISD (c)One year(c)Separate license for (d) $5 (c) Health DivisionofISD (d) One month

place foodprepared (d) Fire Department, Fire(d)Propane permit if Prevention Division

applicableStationary vendors $15 per sq. foot in Boston Public Works One yearpermit downtown and Department

$11 per sq. ft. Licensing Divisionoutside downtownFees to Downtown $200 to $1,000 DCA One month, One dayCrossing Association plus $2 promotionifpushcart vendor fee/day

plus $1 storagefee/davInsurance $200 to $300 Private One year

caua C F 'I D C1 are- amnv ay arePermit Required Permit Cost Issuing Office RenewallExpirationPermit $175 State OfficeofChildren Three yearsTraining: (a) $45 to $85 Varies!community centers (a) One year(a) C.P,R. and first-aid (b) $I5/hour (b) Three yearsclasses ($225)(b) 15hours workshopConstruction costs to meet Varies Building Approved by One-timebuilding requirements OfficeofChildren

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G csua Croup 1 arePermit Required Permit Cost Issuing Office Renewal/Ex__l!_irationCenters wI less than $150 State Officeof Three years39 children ChildrenCenters wImore $250 Same Three yearsthan 39Training: Tuition varies Some private, some (a), (b), and (c) :::::One-(a) If assistant community timeteacher no sponsored. (d) One year

training(b) If teacher has

nine monthsexperience plusthree collegecredits in ChildDevelopment

(c)IfLead Teacher :::::nine to 36monthsexperience(depending onamount ofcollege) plus atleast 12 collegecredits

(d)All must do 20hourstraining/yearafter licensed

Zoning requirements (a)Hearing = $50 (a) City Inspectional One-time(a) Change of plus if granted Servicesoccupancy must meet Department,hearing renovation Zoning and

(b) Appeal requirements = Planning Division$71 every $1,000 (b) Sameestimatedrenovation cost upto $100,000;thereafter,$10/estimated$1,000 cost torenovate

(b) Appeal hearing isfree but to win isbasically to buyyour variance at$1501 violation,(each section ofevery reg. violated= $150)

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C t 1osme 0osvPermit Required Permit Cost Issuing Office RenewallExnirationType 2 license $50 State Board of Two yearsto be a hair dresser Cosmetology1,000 hours of class $5,000 to $8,000 Approved school One-timeState board test $89 State Board One"timeType 1 license $30 State Board Two yearsto operate salonwith two yearssupervision by Type1 cosmetologistIn-horne shop license $50 plus Zoning State"Board Two years

requirementsZoning requirements (a) Hearing = $50 (a) City Inspectional One-time

plus ifgranted Servicesmust meet Department,renovation Zoning andrequirements = Planning Division$7/ every $1,000 (b) Sameestimatedrenovation cost upto $100,000;thereafter,$10/estimated$1,000 cost torenovate

(b) Appeal hearing isfree but to win isbasically to buyyour variance at$150/ violation.(each section ofevery reg. violated= $150)

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Take-Out RestaurantsPermit Required Permit Cost Issuing Office Renewal/ExpirationLegal occupancy $170 City Inspectional One yearpermit Services, Planning

and Zoning DivisionFood handling $200 Health Division, ISD One yearpermit forrestaurantRequired course in $135 ISD One-timerestaurantmanagement.Milk license $20 Health Division One yearIce cream license $20 plus monthly Health Division, ISD One year

inspection ofdispenser

Victualler's license $180 for license Licensing Board for One yearirequires hearing $50 for hearing Alcohol, City of One-time

BostonOpen fire permit $5 Fire Department, One month

Fire PreventionDivisionZoning e.g.: (a) Hearing = $50 (a) City Inspectional One-time(a) Change of plus Services, Planning

Occupancy (1) $1,000 and ZoningHearing (2) $2500 if granted, Division

(1) architectural must meet (1) and (2) = private(2) legal renovation (b) City Inspectional

requirements = Services, Planning$71 $1,000 and Zoningestimated Divisionrenovation cost upto $100,000;thereafter, $10/$1,000 estimatedcost to renovate

(b) Appeal hearing isfree but to win isbasically to buyyour variance at$150/ violation(each section ofevery regulationViolated = $150)

Entertainment Varies, e.g.: City ofBoston One yearlicense for radio, $95 to $120 Licensing Boardtelevision, etc. radio/c.b.

$135 to $180 fortelevision

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BiographyDANA BERLINERStaff Attorney

Dana Berliner serves as a staff attorney at the Institute for Justice. Shelitigates civil rights, economic liberty, property rights, and other constitutionalcases inboth federal and state courts. She currently serves as lead counsel in aMinnesota case challenging the state's right to use private land that has beendesignated as "public water." She litigates the Institute's challenge to the Davis-Bacon Act on the grounds that it discriminates against minority contractors andworkers.

Berliner received her law and undergraduate degrees from Yale Universitywhere she was a member of the YaleLawJournal and represented clients throughthe legal services program. After law school, she clerked for Judge Jerry Smith onthe United States Court ofAppeal for the Fifth Circuit.

Her ideas and opinions have been quoted inUSAToday, Investor's BusinessDaily and The Minneapolis Star Tribune as well as on various radio and televisionbroadcasts.

The Institute for Justice is a public interest, non-profit law center created to advance a rule oflaw under which individuals control their destinies as free and responsible members of society.Through strategic litigation, training, and outreach, the Institute secures protection for individualliberty, challenges the scope and ideology of the Regulatory Welfare State, and illustrates andextends the benefits of freedom to those whose full enjoyment of liberty is denied bygovernment. The Institute was founded in 1991 by William H. Mellor and Clint Bolick.

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The Institute for Justice is a nationally acclaimed public interest law firmthat pursues strategic public interest litigation and outreach to ensure thatindividuals have the opportunity to pursue an honest living and gain a foothold onthe economic ladder. Scripps Howard News Service wrote, "the Institute for Justice[is] a public interest group fighting for something our cities desperately need moreof: economic opportunity at the grassroots."

The Institute for Justice has analyzed government-created barriers to entry-level entrepreneurial opportunity in seven cities across the country: Baltimore,Boston, Charlotte, Detroit, New York, San Antonio and San Diego. At a timewhen there is widespread recognition of the need for less government and moreopportunity, these first-of-their-kind studies identify specific laws and regulationsthat stand in the way of people trying to earn an honest living.

This report, Running Boston'sBureaucratic Marathon) by Institute forJustice attorney Dana Berliner, analyzes significant barriers to economicopportunity at the grassroots in Boston.

For more information, please contact:

I JINSTITUTE FOR JUSTICE1717 PENNSYLVANIA AVENUE, N.W.

SUITE 200WASHINGTON, D.C. 20006

Running Boston's Bureaucratic Marathon

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