Eventually that law was given up because it was hugely unsuccessful - people didn't even slow their usage of plastic bags, and so a lot of resentment developed since no environmental impact was to be found, and stores were clearly happy to profit off of using super-cheap low-quality plastic bags they still charge 5 cents for.
Several years later, still nobody is providing or using the biodegradable plant-based bags. People seem happier, or at least numbed to the idea of paying extra for plastic bags, than either carrying their own bags, or turning to other solutions.
BTW: The lcbo bags were made out of the same plant-based material as used in bio-degradable cutlery, which likewise has pretty much failed to replace single-use plastic ones. For no reason, since there is clearly no shortage of plant-based material from which to manufacture them.
I believe there to be a serious marketing problem when it comes to already existing solutions.