Insane, right.
Check this part out.
Nothing stops anyone from using a fabric bag if they want to. It's a sign of our current national insanity that some people believe it should be made a criminal offense to use anything else.
Another poster boy for this kind of lunacy is the famous "flush free urinal." Currently popular with "green" construction projects, they universally smell exactly like what they are: a bucket with a hole in the bottom whose interior is coated with dried pee. Many buildings are quietly going back to the old models (such as the shiny new local San Jose airport terminal), but it's scary that something like this could be adopted so uncritically.