I live in Colorado (Arapahoe county) and was wondering if local governments allow people to take advantage of the State CFL? Or are cities and counties not allowing home baking due to existing ordinances and zoning laws?

It is my understanding that states set minimum standards and every municipality has the right to increase, but not decrease, those restrictions. Every county wher I live and do business is different. We have some that are the highest... the same as FDA standards, and we have a neighboring county where I wouldn't dare eat, their restrictions are so lax.

No CFL will over-ride zoning. Full licenses can't over-ride that either. the first thing I had to do was to get a zoning sign-off. All businesses go through this. Even a CPA who works from home may need a zoning variance.