Michigan is now a yes. The Cottage Food Industry law was passed July 2010.
This is from the article (http://www.freep.com/apps/pbcs.dll/article?AID=%2F20100712%2FNEWS05%2F7120336%2F1322%2FHomemade-foods-for-sale&-2-state-bills-to-OK-it-today&template=fullarticle
) in the Detroit Free Press July 12, 2010:
"...Baked goods, jam and jellies, candy, vinegar, dried fruit, herbs and mixes made in your kitchen could all be sold publicly provided they are properly labeled to reflect that they are homemade and identify all ingredients under guidelines provided by the state.
The new measures will allow people to sell their goods publicly at farmers markets, roadside stands, county fairs, flea markets and festivals without a state Department of Agriculture license. An individual residence could make up to $15,000 gross annually from such sales, which could help some families with good bakers and cooks make ends meet or spur the creation of entrepreneurs...
...The new law would allow residents to use their home kitchens without a state license. Gross earnings above $15,000 annually in sales would require the operation move into the licensed kitchen category, said Byron Beerbower, compliance manager for the food and dairy division of the state agriculture department...
...The new law requires food packages to be labeled with the name and address of the operation, and the food product and ingredients listed on the label in descending order of predominance by weight. The net weight or net volume of the product, allergen information and "Made in a home kitchen that has not been inspected by the Michigan department of agriculture" also must be on the label.
Beerbower said although residents can sell their goods at farmers markets and roadside stands, they cannot sell them at grocery stores or restaurants unless they have a license. He said enforcement of the new law will be based on complaints investigated by the state agriculture department. He said officials probably will have to work with county prosecutors or the agriculture office if an operation needs to be shut down..."