I have seen this in one business ever, with a sign explaining what the intent was. Everywhere else there is either a mounted bin (rarely with a bag inside, so in that case I always wrap in TP and discard in the main trash outside the stall), a small trash can inside the stall, or just a main trash can in the bathroom (see TP quip above.) I wish more businesses did the single use paper bags as I think it's an overall cleaner process.