BILL ANALYSIS Senate Research Center S.B. 2334 By: Parker State Affairs 4/24/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Airlines operating in Texas are currently allowed to store alcoholic beverages at airports they regularly serve, under the authority of a passenger transportation permit. However, the growing demands of modern airline logisticsparticularly related to food and beverage servicehave outpaced the limited storage capacity available on airport premises. To meet these needs, airlines and their authorized third-party logistics providers often lease warehouse space just outside airport boundaries for the storage and provisioning of onboard supplies, including alcohol. These facilities are still within the immediate vicinity of the airport and under the control of permitted airlines or their agents, but the current statute does not explicitly allow storage off-siteeven when it makes logistical and economic sense. Texas is one of the leading states for both domestic and international air travel, and ensuring our regulatory framework keeps pace with operational realities is essential for maintaining that leadership. S.B. 2334 modernizes a narrow provision of the Alcoholic Beverage Code to reflect how the airline industry functions today. Specifically, it allows airlines with a passenger transportation permit to store sealed alcoholic beverages either on airport property (as current law allows) or within five miles of the airport and within the same county. This is a targeted, pro-business adjustment that helps reduce operational inefficiencies without expanding government or weakening oversight. The bill does not create new alcohol permits, does not impact taxation, and does not alter who airlines must purchase alcohol from. Updating outdated statutory language gives airlines the flexibility they need to streamline operations while maintaining all current safeguards. As proposed, S.B. 2334 amends current law relating to the storage of alcoholic beverages by an airline passenger transportation permittee. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 48.03(b)(2), Alcoholic Beverage Code, to authorize the holder of a passenger transportation permit issued under Section 48.03 (Permit for Airline) to store alcoholic beverages in sealed containers of any size at any airport regularly served by the permittee or within the same county as and within five miles of any airport regularly served by the permittee, in accordance with rules and regulations promulgated by the Texas Alcoholic Beverage Commission. SECTION 2. Effective date: September 1, 2025. BILL ANALYSIS Senate Research Center S.B. 2334 By: Parker State Affairs 4/24/2025 As Filed Senate Research Center S.B. 2334 By: Parker State Affairs 4/24/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Airlines operating in Texas are currently allowed to store alcoholic beverages at airports they regularly serve, under the authority of a passenger transportation permit. However, the growing demands of modern airline logisticsparticularly related to food and beverage servicehave outpaced the limited storage capacity available on airport premises. To meet these needs, airlines and their authorized third-party logistics providers often lease warehouse space just outside airport boundaries for the storage and provisioning of onboard supplies, including alcohol. These facilities are still within the immediate vicinity of the airport and under the control of permitted airlines or their agents, but the current statute does not explicitly allow storage off-siteeven when it makes logistical and economic sense. Texas is one of the leading states for both domestic and international air travel, and ensuring our regulatory framework keeps pace with operational realities is essential for maintaining that leadership. S.B. 2334 modernizes a narrow provision of the Alcoholic Beverage Code to reflect how the airline industry functions today. Specifically, it allows airlines with a passenger transportation permit to store sealed alcoholic beverages either on airport property (as current law allows) or within five miles of the airport and within the same county. This is a targeted, pro-business adjustment that helps reduce operational inefficiencies without expanding government or weakening oversight. The bill does not create new alcohol permits, does not impact taxation, and does not alter who airlines must purchase alcohol from. Updating outdated statutory language gives airlines the flexibility they need to streamline operations while maintaining all current safeguards. As proposed, S.B. 2334 amends current law relating to the storage of alcoholic beverages by an airline passenger transportation permittee. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 48.03(b)(2), Alcoholic Beverage Code, to authorize the holder of a passenger transportation permit issued under Section 48.03 (Permit for Airline) to store alcoholic beverages in sealed containers of any size at any airport regularly served by the permittee or within the same county as and within five miles of any airport regularly served by the permittee, in accordance with rules and regulations promulgated by the Texas Alcoholic Beverage Commission. SECTION 2. Effective date: September 1, 2025.