Arizona has unique legislation regarding plastic pallet ownership that often surprises businesses and individuals. While it’s not universally illegal to own plastic pallets in Arizona, specific regulations govern their acquisition and possession, particularly for certain business types and quantities.
The Legal Framework: Arizona Revised Statutes § 44-1799.81
On July 20, 2011, Arizona implemented a law that significantly impacts plastic pallet ownership. This legislation, codified as Arizona Revised Statutes § 44-1799.81, specifically targets businesses involved in recycling, shredding, reselling, or destroying plastic bulk merchandise containers.
Under this law, a person engaged in these businesses cannot purchase five or more plastic bulk merchandise containers marked with a company name or logo from any single seller at one time without following strict documentation procedures. For wooden bulk merchandise containers, this threshold increases to ten or more items.
Documentation Requirements
The law establishes rigorous record-keeping obligations for businesses acquiring plastic pallets in quantity. When purchasing five or more plastic pallets with company markings, buyers must:
- Obtain detailed records from the seller including:
- The seller’s name, address, and telephone number
- A description of the containers, including quantity
- Transaction date
- License plate number of any vehicle used for delivery
- Verify and document the seller’s identity using government-issued photo identification
- Maintain these records for at least one year after the purchase or delivery date, whichever is later
- Make records available for inspection by law enforcement during regular business hours
Furthermore, businesses cannot attempt to circumvent these requirements by documenting purchases from the same seller on the same day as multiple transactions.
Penalties for Non-Compliance
Violations of Arizona’s plastic pallet regulations carry significant consequences. The law provides for:
- Misdemeanor charges for non-compliance
- Civil penalties of up to $30,000 per violation
These substantial penalties reflect the serious approach Arizona has taken toward addressing the issue of plastic pallet theft.
The Context: Why Arizona Enacted This Law
The primary motivation behind Arizona’s strict plastic pallet regulations was the growing problem of pallet theft, which had become increasingly prevalent by 2011. Several factors contributed to this issue:
Economic Impact
Plastic pallet theft was causing substantial financial losses for Arizona businesses. Industry estimates suggested companies were losing approximately $3 million annually due to stolen pallets. John Kalil, vice president of a Tucson bottling company, reported that his firm alone spent about $700,000 per year replacing pallets that disappeared.
Geographic Factors
Arizona’s strategic location near Mexico creates unique challenges in controlling pallet theft:
- The state serves as a major transportation hub between the United States and Mexico
- This positioning has led to extensive warehousing and distribution networks throughout Arizona
- The proximity to the international border makes it easier for stolen plastic pallets to be shipped across for resale or recycling in less regulated markets
High-Value Targets
Plastic pallets are particularly attractive theft targets for several reasons:
- They have significant recycling value, as they can be easily converted into raw materials
- Their durability makes them more valuable than wooden alternatives
- They have substantial resale potential in secondary markets
- Many carry recognizable company logos, making ownership claims apparent
Organized Criminal Activity
Before the law’s implementation, Arizona faced increasing challenges from organized criminal groups specifically targeting plastic pallets. This systematic theft had grown beyond isolated incidents into a substantial criminal enterprise.
Current Enforcement Practices
As of 2024, while Arizona Revised Statutes § 44-1799.81 remains in effect, enforcement approaches have evolved since the law’s initial implementation. Current enforcement efforts primarily focus on:
- High-risk areas and locations with histories of violations
- Repeat offenders rather than first-time violators
- Large-scale operations involving significant quantities of pallets
- Suspicious transaction patterns that suggest attempts to circumvent the law
This targeted enforcement strategy allocates resources to areas of greatest concern while reducing the burden on small-scale and occasional transactions.
How to Legally Own Plastic Pallets in Arizona
Despite these restrictions, businesses and individuals can legally own plastic pallets in Arizona by following these guidelines:
- Maintain proper documentation of all pallet purchases, particularly for quantities of five or more plastic pallets with company markings
- Keep detailed records of seller information, including identity verification documents
- Comply with quantity restrictions or ensure full documentation for larger purchases
- Ensure pallets are not marked with unauthorized company logos
- For businesses involved in recycling or reselling, implement robust tracking systems for all pallet transactions