H 921

No. 137  Page 1 of 9
2026
No. 137. An act relating to alcoholic beverages.
                                    (H.921)
It is hereby enacted by the General Assembly of the State of Vermont:
    * * * Term Length for Members of Board of Liquor and Lottery * * *
Sec. 1. 7 V.S.A. § 101 is amended to read:
§ 101. COMPOSITION OF DEPARTMENT; COMMISSIONER OF
       LIQUOR AND LOTTERY; BOARD OF LIQUOR AND LOTTERY
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   (b)(1) The Board of Liquor and Lottery shall consist of five persons. Not
all members of the Board shall belong to the same political party.
      (2)(A) With the advice and consent of the Senate, the Governor shall
appoint the members of the Board for staggered three-year four-year terms.
                                     ***
     * * * Fourth-Class Licenses; Serving and Other License Limits * * *
Sec. 2. 7 V.S.A. § 224 is amended to read:
§ 224. FOURTH-CLASS LICENSES
                                     ***
   (b) At each licensed location, a fourth-class licensee may sell by the
unopened container or distribute by the glass, with or without charge, alcoholic
beverages manufactured by the licensee.
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      (1) A licensee may, for consumption at the licensed premises or
location, distribute the following amounts of alcoholic beverages to a retail
customer:
          (A) at a farmer’s market location, not more than:
              (i) two ounces of malt beverages, vinous beverages, or ready-to-
drink spirits beverages with a total of eight ounces; and
          (B)(ii) no more than one-quarter ounce of spirits or fortified wine
with a total of one ounce; or
          (B) at a tasting room and retail shop, not more than:
              (i) an aggregate total of 16 ounces of malt beverages or hard cider;
              (ii) an aggregate total of 12 ounces of vinous beverages or ready-
to-drink spirits beverages; and
              (iii) one-quarter ounce of spirits or fortified wine with a total of
two ounces.
                                        ***
   (c)(1) At only one not more than five fourth-class license location
locations, a licensed manufacturer or rectifier may sell by the unopened
container or distribute by the glass, with or without charge, alcoholic
beverages:
          (A) malt beverages, vinous beverages, or ready-to-drink spirits
beverages produced by no other licensed manufacturers or rectifiers; and
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          (B) spirits or fortified wines produced by not more than five seven
additional licensed manufacturers or rectifiers, provided these beverages are
purchased on invoice from the manufacturer or rectifier.
      (2) A licensed manufacturer or rectifier may sell its product to no more
than five additional manufacturers or rectifiers any fourth-class licensee.
                                      ***
             * * * Removal of Permit-Specific Hours of Sale * * *
Sec. 3. 7 V.S.A. § 230 is amended to read:
§ 230. SALE OF ALCOHOLIC BEVERAGES FOR OFF-PREMISES
       CONSUMPTION
                                      ***
   (c) A licensee may sell alcoholic beverages pursuant to this section
between 10:00 a.m. and 11:00 p.m. [Repealed.]
                                      ***
            * * * Conforming Revision; Local Control Requirements
                             in 7 V.S.A. § 252 * * *
Sec. 4. 7 V.S.A. § 252 is amended to read:
§ 252. SPECIAL EVENT PERMITS
   (a)(1) The Division of Liquor Control may issue a special event permit for
an event open to the public that has been approved by the local control
commissioners if the application is submitted to the Division of Liquor Control
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with the fee provided in section 204 of this title at least five days prior to the
date of the event.
                                        ***
               * * * Notice Period for Retail Tasting Permits * * *
Sec. 5. 7 V.S.A. § 255 is amended to read:
§ 255. RETAIL ALCOHOLIC BEVERAGE TASTING PERMITS
   (a) The Division of Liquor Control may grant a licensee a permit to
conduct an alcoholic beverage tasting event as provided in subsection (b) of
this section if:
      (1) the licensee has submitted a written application in a form required by
the Commissioner and paid the fee provided in section 204 of this title at least
five days one business day prior to the date of the alcoholic beverage tasting
event; and
                                        ***
    * * * Distribution by Malt Beverage Manufacturers; 2028 Sunset * * *
Sec. 6. 7 V.S.A. § 271 is amended to read:
§ 271. MANUFACTURER’S OR RECTIFIER’S LICENSE
                                        ***
   (d)(1) The Board of Liquor and Lottery may grant to a licensed
manufacturer or rectifier a first-class license or a third-class license, or both,
permitting the licensee to sell alcoholic beverages to the public at an
establishment located at the manufacturer’s or rectifier’s licensed facility,
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provided the manufacturer or rectifier owns or has direct control over that
establishment.
      (2) A licensed manufacturer of malt beverages or vinous beverages may
operate up to two licensed establishments pursuant to this subsection that are
located at the licensed manufacturing facility or on property that is owned by
the licensee and is contiguous with the parcel of land on which the licensed
manufacturing facility is located, provided the manufacturer owns or has direct
control over both establishments.
                                      ***
   (g) A licensed manufacturer of malt beverages may distribute an annual
total of not more than 3,000 barrels of the manufacturer’s malt beverages
directly to holders of first- or second-class licenses. A licensed manufacturer
of malt beverages shall retain copies of records of distribution and sales made
pursuant to this subsection. Annually, on or before January 15, a licensed
manufacturer shall report to the Division in a manner and form required by the
Commissioner the total amount of malt beverages distributed pursuant to this
subsection during the preceding 12 months.
Sec. 7. [Deleted.]
              * * * Removing Certified Check Requirement * * *
Sec. 8. 7 V.S.A. § 275 is amended to read:
§ 275. SOLICITOR’S LICENSE
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   (a) The Board of Liquor and Lottery may grant an individual a solicitor’s
license if he or she the individual does all of the following:
                                       ***
      (3) Pays the fee provided in section 204 of this title to the Division of
Liquor Control by certified check made payable to the State of Vermont. The
certified check payment shall be returned to the applicant if the Board does not
grant him or her the individual a license under this section.
                                       ***
    * * * Deleting 2026 Sunset of Special Venue Serving Permits for Retail
                              Establishments * * *
Sec. 9. 2024 Acts and Resolves No. 156, Secs. 3 and 4 are amended to read:
              * * * 2026 Sunset of Special Venue Serving Permits
                         for Retail Establishments * * *
   Sec. 3. 7 V.S.A. § 254 is amended to read:
   § 254. SPECIAL VENUE SERVING PERMITS
   (a) The Division of Liquor Control may grant an art gallery, retail
establishment, public library, or museum a special venue serving permit if the
applicant has:
                                       ***
   (e) An art gallery, retail establishment, public library, or museum may be
issued not more than 12 special venue serving permits in a calendar year.
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   (f) As used in this section, “retail establishment” does not include a
Vermont agency liquor store or a cannabis establishment as that term is
defined in section 861 of this title. [Deleted.]
   Sec. 4. 7 V.S.A. § 2 is amended to read:
   § 2. DEFINITIONS
   As used in this title:
                                        ***
      (38) “Special venue serving permit” means a permit granted by the
Division of Liquor Control permitting an art gallery, retail establishment,
public library, or museum to conduct an event at which malt or vinous
beverages, or both, are served by the glass to the public. As used in this
section, “art gallery” means a fixed establishment whose primary purpose is to
exhibit or offer for sale works of art; “public library” has the same meaning as
in 22 V.S.A. § 101; and “museum” has the same meaning as in 27 V.S.A.
§ 1151. As used in this section, “retail establishment” does not include a
Vermont agency liquor store or a cannabis establishment as that term is
defined in section 861 of this title.
                                        ***
[Deleted.]
Sec. 10. 2024 Acts and Resolves No. 156, Sec. 11 is amended to read:
   Sec. 11. EFFECTIVE DATES
   (a) This section and Sec. 5 shall take effect on passage.
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   (b) Secs. 3 and 4 shall take effect on July 1, 2026. [Deleted.]
   (c) All other sections shall take effect on July 1, 2024.
                            * * * Caterer’s License * * *
Sec. 11. 7 V.S.A. § 2 is amended to read:
§ 2. DEFINITIONS
   As used in this title:
                                       ***
      (5) “Caterer’s license” means a license issued by the Board of Liquor
and Lottery authorizing the holder of a first-class license or first- and third-
class licenses to serve alcoholic beverages at a function located on premises
other than those occupied by a first-, first- and third-, or second-class licensee
to sell alcoholic beverages pursuant to section 241 of this title.
                                       ***
Sec. 12. 7 V.S.A. § 241 is amended to read:
§ 241. CATERER’S LICENSE; COMMERCIAL CATERING LICENSE
   (a) The Board of Liquor and Lottery may issue a caterer’s license or a
commercial catering license to a person who holds a first-class license or first-
and third-class licenses. The holder of a caterer’s license is authorized to serve
alcoholic beverages at a function located on premises other than those
occupied by another first-, first- and third-, or second-class licensee to sell
alcoholic beverages. The holder of a caterer’s license may host not more than
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five functions per calendar year located on the license holder’s own first-, first-
and third-, or second-class licensed premises.
                                       ***
                           * * * Effective Dates * * *
Sec. 13. EFFECTIVE DATES
   (a) This section and Secs. 9 through 12 shall take effect on passage.
   (b) [Deleted.]
   (c) All other sections shall take effect on July 1, 2026.
Date Governor signed bill: June 15, 2026
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