The Republican from Lynden says the bill would remove a yearly income cap of $15,000 for cottage food operations.
A cottage food operator produces food in their own kitchen and sells direct to the consumer at places like farmers' markets and church events.
Overstreet says the current lid on sales limits the opportunity of cottage food operators to make a meaningful income and have more than just a hobby.
The bill does not change current rules related to food safety, inspections or packaging and labeling of cottage foods.
There are currently 33 states with cottage food laws and 21 of them do not have an income limit.