In 49 states in America, people are free to bake cookies or cakes at home and then sell them at a local farmer’s market. But not in New Jersey, where a home baker who tried that would face a fine of up to $1,000.

Until this week. On Monday the state’s Department of Health published new rules that now allow people who bake from home to get a $100 “cottage food” license to sell their goods to friends, neighbors and other eager customers. “I am beyond happy that New Jersey finally has a cottage food law and has caught up with...

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In 49 states in America, people are free to bake cookies or cakes at home and then sell them at a local farmer’s market. But not in New Jersey, where a home baker who tried that would face a fine of up to $1,000.

Until this week. On Monday the state’s Department of Health published new rules that now allow people who bake from home to get a $100 “cottage food” license to sell their goods to friends, neighbors and other eager customers. “I am beyond happy that New Jersey finally has a cottage food law and has caught up with the rest of the country,” says Martha Rabello, a board member of the New Jersey Home Bakers Association.

Her group was party to a lawsuit brought against the baking ban by the Institute for Justice. Heather Russinko was one of three women who were also part of the lawsuit. Ms. Russinko is a single mom, domestic abuse survivor and home entrepreneur who hoped to sell her signature cake pops to help pay for her son’s college. The judge held the case in abeyance until the parties could work out a solution.

Now they have. Gone are the old requirements intended to reduce competition for commercial bakers, such as a commercial grade kitchen separate from a home kitchen. “New Jersey’s ban on making money from home baked goods was irrational from the start,” says Rob Peccola, the lawyer who litigated the case. “You are more likely to be struck by lightning than to get sick from eating something baked at home.”

New Jersey consumers will also benefit from the greater availability of home-made baked goods. This is one victory that should be celebrated with a cake.

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