Authorizes retail store operators who provide plastic carryout bags to customers to establish, in lieu of a local ordinance banning or restricting carryout bags, an in-store recycling program for carryout bags.

Provides that only a county may enact a local ordinance that bans, restricts, or otherwise regulates, taxes, or requires fees for the use of carryout bags in any geographic area located within a county.

Prohibits cities, towns, and code cities from enacting local regulations regarding retail store carryout bags.

Provides a business and occupation tax deduction on reasonable costs incurred by retail stores that are required by an act of county government to provide carryout bags made of paper to customers instead of plastic carryout bags.