Maryland Supreme Court Declines to Hear Case on Hemp-Derived THC Sales, Keeping Products on Store Shelves

Unlicensed retailers in Maryland can continue selling hemp-derived THC products after the state Supreme Court declined Nov. 17 to hear a lawsuit brought by the Maryland Hemp Coalition and other hemp-related businesses.

The Supreme Court’s decision not to review the Washington County Circuit Court’s order blocking a provision in Maryland’s adult-use cannabis law that prohibited some retailers from selling hemp-derived THC products will keep the products on store shelves throughout the state.

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

Maryland voters approved an adult-use cannabis legalization measure in the November 2022 election, and lawmakers then created the regulatory and licensing framework for the market during this year’s legislative session. That law, the Cannabis Reform Act, 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. The regulations cover both delta-8 and delta-9 THC.

Maryland’s licensed medical cannabis operators launched commercial adult-use sales in July, and the Maryland Cannabis Administration (MCA) is accepting applications from social equity applicants for the first round of new adult-use cannabis business licenses through Dec. 12.

Maryland officials have argued that the restrictions on hemp-derived THC products promote public safety, but the plaintiffs in the lawsuit claimed that the rules violate the state Constitution’s equal protection and anti-monopoly clauses by excluding them from the tightly regulated cannabis market. They argued that provisions in Maryland’s adult-use cannabis law wrongfully require them to obtain a cannabis business license—which mandates that they meet certain eligibility requirements—or stop selling the products suddenly made illegal under the law.

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

The Maryland Hemp Coalition filed the civil suit in July against Gov. Wes Moore, the MCA, and the Maryland Alcohol, Tobacco, and Cannabis Administration.

Washington County Circuit Court Judge Brett R. Wilson issued the preliminary injunction in October to temporarily suspend the provisions in Maryland’s adult-use cannabis law that prohibited unlicensed retailers from selling hemp-derived THC products.

Wilson said the provisions related to the products would “irreparably harm” the plaintiffs by forcing them to lose business or close their doors.

The state then requested a “bypass review,” seeking immediate review by the Supreme Court before the Maryland Appellate Court decides the appeal, according to the Maryland Daily Record. In its request, the state argued that the unregulated sale of intoxicating hemp-derived products creates a public health risk, the news outlet reported.

A spokesperson for the Maryland Attorney General told the Maryland Daily Record that the office is evaluating the Supreme Court’s decision and considering its next course of action.

In the meantime, the state’s appeal with proceed in the Maryland Appellate Court, the news outlet reported.