The California retail sector is approaching a regulatory deadline that demands immediate operational changes: January 1, 2026. Under the sweeping mandates of Senate Bill 1053 (SB 1053), California is escalating its efforts to combat plastic pollution by implementing a total prohibition on the distribution and sale of all plastic carryout bags at the point of sale. This legislation, signed by Governor Gavin Newsom in 2024, directly impacts a broad range of establishments, including grocery stores, convenience stores, food marts, liquor stores, and any retail location that operates with a pharmacy.
The End of the ‘Reusable’ Plastic Loophole
SB 1053 was specifically engineered to close a regulatory gap left by California’s initial ban, SB 270 (2014/2016). While the original law successfully banned thin, flimsy, single-use plastic bags, it permitted retailers to offer thicker plastic film bags (requiring a minimum thickness of 2.25 mils) that were designated as “reusable” and subject to recycled content standards.
However, this created what legislators termed a “legal loophole”. In practice, data showed that consumers rarely reused these thicker plastic bags, and critically, the state’s recycling infrastructure could not effectively process them. This failure resulted in a new wave of more voluminous, disposable plastic waste, running counter to the law’s environmental goals.
The enforcement push intensified in October 2025, when California Attorney General Rob Bonta concluded an investigation into major plastic bag manufacturers, finding that their bags failed to meet the state’s actual recyclability requirements. SB 1053 eliminates this ambiguity by prohibiting all plastic bags at the point of sale, regardless of their thickness or prior certification for reuse.
New Rules for Retail Distribution
For affected businesses, the mandate is clear: plastic bags of any kind must be phased out completely before January 1, 2026.
This prohibition is comprehensive, applying across all retail transaction methods, including:
- Checkout counters
- Self-checkout kiosks
- In-store pickup services
- Curbside delivery
- Home delivery
By extending the ban to digital and delivery channels, the state prevents retailers from skirting the rule by shifting plastic distribution to e-commerce platforms. The ultimate policy goal is to eliminate single-use plastic pollution and unequivocally encourage consumers to adopt the habit of bringing their own reusable bags.
The only authorized disposable option for customers who do not bring a reusable bag is the recycled paper carryout bag.
The Mandatory Fee and Financial Transparency
To discourage the rapid substitution of plastic with paper and promote reusable options, retailers must impose a charge for the paper alternative. Stores are legally required to charge a minimum of ten cents ($0.10) per recycled paper bag provided to the customer at the point of sale.
Crucially for retailers, this fee is not a tax; the store retains the funds collected. However, the use of these proceeds is strictly regulated and must be dedicated exclusively to:
- Covering the cost of providing compliant bags.
- Supporting compliance with the new regulations.
- Funding educational campaigns related to waste reduction.
To maintain transparency, retailers must ensure that the $0.10 charge is detailed and visibly itemized on customer receipts. Exemptions from this fee apply to customers who use payment cards or vouchers issued by federal or state food assistance programs, such as the California Special Supplemental Food Program for Women, Infants, and Children (WIC) or the Electronic Benefit Transfer (EBT) card.
High Stakes: The Teeth of SB 1053
Regulators are serious about compliance, especially given the shortcomings of the previous law. Local jurisdictions are adopting stringent penalty regimes to enforce SB 1053. For instance, Napa County has instituted daily fines, warning retailers that failure to comply could result in penalties of $1,000 per day for an initial violation, increasing up to $5,000 per day for repeat offenses. This heavy fine structure is intended to motivate all retailers to prioritize compliance, acknowledging that such penalties could pose an “existential threat” to smaller convenience and liquor stores also subject to the ban.
Strategic Steps for Retail Compliance
Retailers must use the final transition period to ensure full adherence to the new law:
- Inventory Liquidation: Immediately stop ordering plastic bags and ensure all existing plastic inventory is depleted and distribution ceases before January 1, 2026.
- POS System Overhaul: Verify that all Point-of-Sale software and systems, including those used for home delivery and curbside pickup, are correctly configured to apply the $0.10 minimum fee and accurately detail this charge on customer receipts.
- Future-Proofing the Paper Supply Chain: Retailers must confirm their current recycled paper bags meet the existing post-consumer recycled material standard. More critically, all paper bags distributed must contain a minimum of 50% postconsumer recycled materials starting January 1, 2028. Securing suppliers who can certify this higher standard now is key to mitigating future risk in a tightening supply market.
SB 1053 is not simply a shift from one material to another; it is a legal and logistical mechanism designed to compel the retail industry to become active agents in California’s comprehensive transition toward a circular, reusable economy. This new era forces meticulous inventory management, strict financial accountability for bag fees, and forward-looking supply chain planning.
