The proposed "Single-Use Plastic Bag Act" aims to prohibit retail establishments in New Mexico from providing single-use plastic bags for transporting goods, with certain exceptions. The bill defines key terms such as "carryout bag," "reusable carryout bag," and "single-use plastic bag," and outlines specific scenarios where single-use plastic bags may still be used, including for loose products, takeout food, and prescription medications. Retailers are allowed to provide recycled content paper bags, but only if customers pay a fee of at least ten cents per bag, with provisions for fee collection and remittance to municipalities or the state.

The act also establishes enforcement mechanisms, allowing municipalities or counties to impose civil penalties for violations, with escalating fines for repeated offenses. It allows local governments to enact stricter regulations if desired and sets the effective date for the law to begin on January 1, 2026. The bill includes provisions for the department of environment to create rules for implementation and to manage the collected fees, which are designated for waste and litter reduction programs.