Three resolutions were moved for the election of 71-year-old Butail to the post.
The first resolution was moved by Chief Minister Virbhadra Singh, the second by leader of opposition Prem Kumar Dhumal and the third by Irrigation and Public Health Minister Vidya Stokes.
The election was conducted by pro-tem speaker Mansa Ram.
Virbhadra Singh described Butail as a senior politician with a major contribution towards the promotion of Kangra tea, known for its flavour and quality.
Butail was elected to the assembly for the fifth time from Palampur, the town in Kangra district known for growing tea.
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He was first elected to the assembly in 1985 and was re-elected in 1993, 1998, 2003 and 2012.
According to NGO National Election Watch, Butail's declared assets before the elections this year were worth over Rs.169 crore.
The assets grew from Rs.91.92 crore during the 2007 assembly polls to Rs.169.21 crore in 2012, it said.