Colorado Plastic Bag Ban Compliance Guide for Retailers (HB 21-1162, 2025) - Jet Paper Bags

Colorado Plastic Bag Ban Compliance Guide for Retailers (HB 21-1162, 2025)

Introduction

As of January 1, 2024, Colorado’s Plastic Pollution Reduction Act (HB 21-1162) has reshaped how retailers provide carryout bags. Under this law:

  • Single-use plastic carryout bags are banned for most large retailers.

  • A minimum $0.10 fee is required for each recycled paper carryout bag.

  • Polystyrene (Styrofoam) food containers are prohibited at retail food establishments.

This legislation aims to reduce waste, encourage reusable products, and promote sustainable alternatives. For retailers, compliance is not optional — and for those prepared, it’s also an opportunity to enhance brand image and customer loyalty.

At Jet Paper Bags, we help Colorado businesses adapt to these changes quickly with locally stocked, eco-friendly packaging options, including Brown Bags, White Bags, and Pizza Boxes.

Who Must Comply and Who’s Exempt

Businesses Required to Comply

The ban applies to:

  • Large retail chains (grocery stores, big box retailers, department stores, convenience stores, pharmacies).

  • Retailers with more than 3 locations in Colorado or multiple locations nationwide.

  • Out-of-state retailers operating in Colorado.

These businesses must:

  • Stop offering single-use plastic carryout bags.

  • Charge a minimum $0.10 fee per recycled paper bag.

  • Remit 60% of fees to local government each quarter, keeping 40% to cover costs.

Exempt Businesses

Some businesses are exempt from the law, including:

  • Small, Colorado-only businesses with three or fewer locations (not part of a franchise or corporate chain).

  • All restaurants, regardless of size.

Note: Exempt businesses may choose to participate voluntarily and keep 100% of the bag fees, depending on local rules. This can help offset packaging costs while supporting environmental goals.

Why Compliance Matters for Businesses

  1. Avoid Fines & Legal Penalties
    Non-compliance can be costly — in Denver, fines reach up to $999 per violation.

  2. Enhance Brand Reputation
    Consumers value eco-friendly practices. Complying shows you care about sustainability.

  3. Offset Costs
    Although paper bags cost more than plastic, you keep 40% of collected fees to cover expenses.

  4. Promote Your Brand
    Custom-printed bags turn every purchase into walking advertising.

Step-by-Step: Getting Bag-Fee Compliant

1. Confirm Your Compliance Status

Check whether your business meets the exemption criteria. If not, prepare for full compliance.

2. Source Compliant Paper Bags

Choose eco-friendly, recycled paper bags like:

3. Set Up the $0.10 Minimum Fee

Implement this at checkout (POS systems, online ordering, etc.). Adjust if your city or county requires a higher fee.

4. Track & Remit Fees

  • Track the total number of bags sold.

  • Remit 60% of fees quarterly to your local government.

5. Display Required Signage

Many municipalities, like Denver, require visible notices at points of sale explaining the bag fee.

6. Optimize Supply Chain

Use local suppliers to reduce delivery times and avoid stock shortages.

How Jet Paper Bags Supports Colorado Businesses

  • Fast Colorado Fulfillment – Get your order delivered quickly to meet compliance deadlines.

  • Custom Printing – Add your logo, business name, or eco-friendly messages.

  • Bulk Pricing – Save more when you order in volume. Request a quote through our Wholesale Bag Inquiry.

  • Wide Range of Sizes – From small retail bags to large grocery-sized options.

  • Specialty Products – Grease-resistant pizza boxes, luxury gift packaging, and non-woven bags.

Conclusion & Call to Action

Colorado’s Plastic Pollution Reduction Act isn’t just a regulation — it’s a chance for retailers to modernize their operations, connect with eco-minded customers, and turn compliance into a marketing advantage.

At Jet Paper Bags, we supply compliant, eco-friendly, and custom-branded bags to help your business meet legal requirements while standing out from the competition.

📦 Get started today — order samples or request a quote via our Wholesale Bag Inquiry and ensure your business is ready for 2025 and beyond.

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