Maryland Judge Bars State From Enforcing Ban on Hemp-Derived THC Sales

A Maryland judge has barred the state from enforcing a ban on certain hemp-derived THC sales in response to litigation brought by the Maryland Hemp Coalition and other hemp-related businesses.

Washington County Circuit Court Judge Brett R. Wilson issued a preliminary injunction Oct. 12 that temporarily suspends part of Maryland’s adult-use cannabis law that barred some retailers from selling intoxicating hemp-derived products containing THC, The Associated Press reported.

Maryland voters approved an adult-use cannabis legalization measure in the November 2022 election, and lawmakers then created the regulatory and licensing framework during this year’s legislative session. That law prohibits unlicensed businesses from selling hemp-derived products containing more than 0.5 milligrams of THC per serving or 2.5 milligrams of THC per package, according to The Baltimore Banner, and covers delta-8 and delta-9 THC.

RELATED: Maryland Gov. Wes Moore Signs Adult-Use Cannabis Program Into Law

The state’s licensed medical cannabis operators launched adult-use sales in July and narrowly missed a record sales month for September, when they reported $90.5 million in sales.

Maryland officials argue that restrictions on hemp-derived THC products promote public safety, AP reported, and leaders in the General Assembly have indicated that they believe the law will hold up to judicial scrutiny.

“We are disappointed in the Washington County Circuit Court’s initial order regarding Maryland’s landmark recreational adult-use cannabis legislation,” House Speaker Adrienne Jones and Senate President Bill Ferguson said in a joint statement, according to The Baltimore Banner. “We remain confident that the law is legal.”

Will Tilburg, acting director of the Maryland Cannabis Administration, also expressed disappointment over the injunction, the news outlet reported.

The plaintiffs in the lawsuit, however, argue that the rules violate the state Constitution’s equal protection and anti-monopoly clauses by excluding them from the tightly regulated cannabis market.

The Maryland Hemp Coalition filed the civil suit in July and named Gov. Wes Moore, the Maryland Cannabis Administration, and the Maryland Alcohol, Tobacco, and Cannabis Commission as defendants. The plaintiffs claim that provisions in the state’s adult-use cannabis law wrongfully require them to get a cannabis business license (which mandates they must meet certain eligibility requirements), stop selling the products suddenly made illegal under the law or close their shops.

Hemp retailers impacted by the law will now be able to continue operations under last week’s court order as the state attempts to dismiss the lawsuit, according to AP.

Wilson said the provisions related to hemp-derived THC products would “irreparably harm” the plaintiffs by forcing them to lose business or close their doors, and he said his order “is not contrary to the public interest,” The Baltimore Banner reported.

Nevin Young, the plaintiffs’ attorney, said the lawsuit “defends his clients’ fundamental liberties and deconstructs the state’s controlling interest in the cannabis industry,” according to the news outlet.

Young also disputed the state’s claims that the plaintiffs’ hemp-derived THC products are untested and unregulated, saying that the THC in his clients’ offerings are less intoxicating than products sold in state-licensed dispensaries and are tested by federally certified labs, The Baltimore Banner reported.

“This is really about the state wanting sole control—through a very limited number of retailers—of the market for all THC products,” Young said, adding that he is pleased that, for now, his clients can operate their businesses again.

No court date has been set in the case, according to The Baltimore Banner.