Bakery products and some other foods like jams, jellies, dried herbs and spices, granola, popcorn, and candy, are considered low-risk for spoilage because they are not able to support the growth of potentially harmful organisms and do not require refrigeration.  These foods are known as non-potentially hazardous. (Read an article explaining the difference between potentially hazardous and non-potentially hazardous desserts.)

23 states have Cottage Food Laws.  The most recent states to enact these laws are Arkansas, Arizona, Florida, South Dakota, Texas and Washington State, in 2011 alone.

These states generally report very few, if any, complaints or incidences of food-borne illness originating from non-potentially hazardous foods prepared in residential kitchens.

States that are currently considering Cottage Food Laws:

New Jersey A1761, S93  Introduced January, 2012
Colorado HB 12-1027 (Bradford) and SB 12-048 (Schwartz) Introduced January, 2012
South Carolina HB 4689, SB 1035 Introduced December, 2011
New Hampshire HB 1650, introduced 2012
Oklahoma HB 2403, introduced February 6, 2012
California AB 1616, introduced February, 2012

States that have recently considered Cottage Food Laws:

Read Maryland's proposed law here (introduced 2/10/09).  This bill would permit home bakers to sell non-potentially hazardous baked goods without a license.  Bill died in committee 3/25/09.  A similar version died in 2010.  Bill may be reintroduced in 2012.

States with existing Cottage Food Laws:

  Arizona 

  Arkansas

  Iowa

  Florida

  Maine

  Massachusetts

  Michigan

  New Hampshire

  New Mexico

  North Carolina

  Ohio (Ohio Cottage Foods Statute)

  Oregon

  Pennsylvania

  South Dakota

  Tennessee

  Texas

  Utah

  Vermont 

  Virginia

  Washington State

  Wyoming Traditional Foods Act (Special provisions apply)

States that allow home baking for the purpose of selling at a Farmer's Market or roadside stand

  Alabama

  Illinois

  Indiana