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.)

31 states have Cottage Food Laws.  The most recent states to enact these laws are Oklahoma (April, 2013),  Mississippi (April, 2013),  California (September, 2012), and South Carolina (June, 2012).

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 
Missouri HB 617
Alabama SB 236
Louisiana SB 18

States that have recently considered Cottage Food Laws:

Read Maryland's proposed law here (introduced 2/10/09). Several attempts in Maryland have failed due to opposition from the state health department.

States with existing Cottage Food Laws:

  Alaska (exemption, page 6)

  Arizona 

  Arkansas

  California (September, 2012)

  Colorado (March, 2012)
 
  Georgia (2012)

  Iowa

  Florida

  Maine

  Massachusetts

  Michigan

  Mississippi (April, 2013)

  New Hampshire

  New Mexico

  North Carolina

  Ohio (Ohio Cottage Foods Statute)
  
  Oklahoma (effective November 1, 2013)

  Oregon

  Pennsylvania

  South Carolina

  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