As you pointed out, reusing paper or cloth bags is a health hazard. It has been documented that the reuse of these bags when food shopping has led to some deaths from contaminated food. The bacteria collected in these bags will lead to serious health problems if the food you are going to eat comes in contact with it, as they surely will. It is much healthier to use plastic bags.
Bingo. There is no way I’d use the cloth bags.....too much chance for cross contamination.