89th Legislature Regular Session

SB 2334

Overall Vote Recommendation
Yes
Principle Criteria
Free Enterprise
Property Rights
Personal Responsibility
Limited Government
Individual Liberty
Digest
SB 2334 seeks to amend Section 48.03(b) of the Texas Alcoholic Beverage Code to expand the operational flexibility of holders of a passenger transportation permit. Specifically, the bill authorizes permit holders to store alcoholic beverages in sealed containers of any size not only at airports they regularly serve, but also within the same county and within five miles of those airports. This extends current law, which previously limited such storage locations more narrowly. The bill preserves oversight by requiring compliance with regulations set forth by the Texas Alcoholic Beverage Commission.

In addition to storage changes, SB 2334 confirms that permit holders may sell or serve alcoholic beverages from any size container aboard commercial passenger aircraft operating under valid federal or state licenses or certificates. The bill explicitly affirms this authority even when aircraft cross geographic areas where alcohol sales are prohibited on the ground. This codifies a common operational practice and provides legal clarity for airlines operating in Texas airspace.

By addressing both service and storage parameters for alcohol in the commercial airline industry, SB 2334 provides a modest but meaningful update to the Alcoholic Beverage Code. It reflects a modernization of existing statutes in response to logistical realities in air travel and aligns Texas law more closely with federal aviation practices.

The originally filed version of SB 2334 was narrowly focused on amending a single subsection of the Alcoholic Beverage Code—Section 48.03(b)(2). In that version, the bill proposed to authorize airline passenger transportation permit holders to store alcoholic beverages in sealed containers of any size at airports they regularly serve, or within the same county and within five miles of those airports. The language preserved the requirement that such storage comply with rules promulgated by the Texas Alcoholic Beverage Commission.

In contrast, the Committee Substitute expanded the scope of the bill by also incorporating amendments to Section 48.03(b)(1). This addition expressly affirms the right of permit holders to sell or serve alcoholic beverages in or from any size container aboard a commercial passenger airplane. It clarifies that this authority applies even when the airplane crosses areas where the sale of alcohol is otherwise prohibited on the ground. The inclusion of this provision broadens the operational flexibility of airlines and codifies common industry practices into statute.

Overall, the substitute version transforms SB 2334 from a narrow technical amendment on alcohol storage into a more comprehensive bill that addresses both storage and service provisions for in-flight alcohol. This dual-focus approach modernizes the statute, aligns state law with federal aviation operations, and provides legal certainty to permit holders operating within Texas.
Author
Tan Parker
Fiscal Notes

According to the Legislative Budget Board (LBB), the fiscal implications of SB 2334 are minimal at both the state and local levels. There is no significant fiscal impact anticipated for the state. The Texas Alcoholic Beverage Commission (TABC), which is the agency responsible for implementing the provisions of the bill, is expected to manage any administrative or enforcement duties arising from the changes using existing agency resources. In other words, the bill does not require new appropriations or additional staffing and should not increase state expenditures in a meaningful way.

At the local level, the bill is also not expected to result in any significant fiscal implications for counties or municipalities. Because the scope of the bill is focused on airline passenger transportation permit holders—a regulatory category that is administered at the state level—there is no requirement for local government bodies to provide new oversight or infrastructure to accommodate the changes.

In summary, SB 2334 presents no direct costs to taxpayers and does not necessitate new revenue streams or appropriations. Its provisions are narrowly tailored to commercial airline operations and fall within the administrative purview of an existing state agency, making it a fiscally neutral policy change from a budgetary standpoint.

Vote Recommendation Notes

SB 2334 responds to evolving airline logistics by clarifying that airlines holding a passenger transportation permit may store sealed alcoholic beverages not only at airports they regularly serve, as currently permitted, but also within five miles of those airports and within the same county. This legislative adjustment reflects a realistic understanding of how airlines and their third-party logistics partners operate today, where off-airport storage facilities are often essential due to space limitations and efficiency demands.

Importantly, the bill does not expand government authority, introduce new permits, or affect alcohol taxation. It simply revises a narrow provision to accommodate routine industry practices while maintaining all existing safeguards under the oversight of the Texas Alcoholic Beverage Commission. This ensures the continued regulation of alcohol without imposing unnecessary logistical or economic burdens on airlines. In this way, the bill strengthens the principles of limited government and free enterprise by reducing operational constraints and allowing businesses to adapt efficiently within a regulated framework.

From a fiscal perspective, the Legislative Budget Board projects no significant fiscal implications for either the state or local governments, as any related costs can be absorbed within existing agency budgets. The bill’s targeted nature, pro-business orientation, and lack of negative impact on individual liberty, personal responsibility, or private property rights further support a favorable vote. In total, SB 2334 exemplifies a modest, well-justified update to state law that supports modern economic realities without compromising public accountability or regulatory integrity. As such, Texas Policy Research recommends that lawmakers vote YES on SB 2334.

  • Individual Liberty: The bill does not directly regulate individuals, but it enhances liberty by reducing unnecessary constraints on lawful business activities. By allowing airlines more flexibility in where they can store alcohol, it respects the principle that free people and lawful entities should not face arbitrary limits on their operations, especially when there is no public safety concern.
  • Personal Responsibility: The bill assumes that airlines and their contractors will continue to follow existing alcohol regulations. It does not shift responsibility away from businesses or create new liabilities. Oversight remains under the Texas Alcoholic Beverage Commission (TABC), and all storage must still comply with existing rules.
  • Free Enterprise: This is where the bill makes its strongest liberty-based impact. It removes a regulatory bottleneck that doesn’t serve a compelling public interest and allows airlines to operate more efficiently and economically. Businesses benefit from being able to use off-site storage facilities close to the airport—something many already do unofficially. The change reduces overhead costs and makes airline logistics more competitive in a pro-business way.
  • Private Property Rights: The bill does not expand or restrict private property rights but indirectly supports them by validating the use of private warehouse facilities for alcohol storage. It allows businesses to make use of their leased or owned property near airports in a lawful and regulated way.
  • Limited Government: By updating a narrow and outdated statute, the bill shows that the government can respond to real-world needs without expanding its size or power. It removes a vague or restrictive rule while keeping existing enforcement mechanisms intact. This is a good example of smart deregulation: reducing red tape while maintaining proper oversight.
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