We had a similar law passed in Michigan about eight years ago - before then I admit I did semi-legally sell baked goods. It wasn't exactly illegal because I wasn't taking things around selling them and the things I sold were requested from me by friends. But it wasn't strictly legal because I wasn't making them in a commercial kitchen.
The thing about the cottage industry laws here is that they're still pretty strict about what you CAN and CAN'T sell under the law - basic baked goods are fine, but nothing that contains custard, for instance, or needs refrigeration can be made to sell under the cottage industry law.