The Single-Use Plastic Bag Act prohibits retail establishments in New Mexico from providing single-use plastic bags for transporting goods, with certain exceptions. These exceptions include bags for loose or bulk products, prepared takeout food, prescription drugs, and other specific uses as determined by the Department of Environment. Retailers are allowed to provide recycled content paper bags, but only if customers pay a fee of at least ten cents per bag. The act also outlines the definitions of various terms related to the legislation, such as "carryout bag," "reusable carryout bag," and "single-use plastic bag."

Additionally, the act establishes enforcement mechanisms, allowing municipalities or counties to impose civil penalties for violations, with fines escalating for repeated offenses. The Department of Environment is tasked with implementing rules and may also enforce the act if local authorities do not. The act will take effect on January 1, 2026, and any fees collected from recycled content paper bags will be used for waste and litter reduction programs.