In a significant victory for the Maryland hemp industry, justice has been served as the courts provided much-needed relief from the burdensome Cannabis Reform Act (CRA).
After more than a month since the hearing, the Maryland hemp industry obtained an injunction on October 12th, effectively prohibiting the enforcement of the CRA. This landmark decision, delivered by the honorable Washington County Circuit Court Judge Brett R. Wilson, marks a crucial battle against corporate interests seeking to monopolize the cannabis and cannabinoid market in Maryland and beyond. The State disagreed with this ruling and attempted to fast-track the case to the Maryland Supreme Court, but were denied.
In this article we break down the ruling for the preliminary injunction, the MD Supreme Court's denial, and steps the MHC are taking, moving forward, to protect the hemp industry.
Illegal Monopoly
The core issue at stake in this case is the creation of a clear monopoly through the CRA. Judge Wilson's words emphasize the blatant nature of this monopoly:
"[I]t is clear that the CRA creates an Article 41 monopoly that unfairly excludes many from their right to continue, or enter, a profession of their choosing, all to the detriment of the public."
Maryland isn't alone in creating such monopolies. This decision sets an important precedent that may inspire future injunctions and potential dismantling of state laws that prioritize corporate interests over the rights of individuals and small businesses in the cannabis trade.
Violates the Right to Equal Protection
The CRA has been challenged not only for creating a monopoly but also for violating the Maryland Declaration of Rights, which embodies protections similar to the Equal Protection Clause of the Fourteenth Amendment in the U.S. Constitution. Judge Wilson noted that the CRA "barred many of the plaintiffs from continuing in a legitimate business which continues to be legitimate, albeit with additional regulations for health and safety."
Moreover, the court ruled that participants in the hemp industry were acting lawfully under both federal and Maryland state law prior to the enactment of the CRA, which suddenly rendered their operations illegal. This abrupt loss of livelihood due to the licensing scheme is a clear violation of their rights.
"The court cannot find a rational basis to support the exclusive, and exclusionary, licensing scheme that has put [hemp industry] Plaintiffs out of their legitimate businesses.”
Fails to Achieve Social Justice
The court's judgment also highlighted that the purported social equity provisions of the CRA fail to rectify the harm done by the war on drugs. Judge Wilson pointed out that the CRA's licensing scheme is based on an assumption that everyone residing in a community with a history of disproportionately high marijuana charges was disproportionately affected. However, the State failed to provide evidence that this scheme would genuinely benefit the impacted communities.
“The CRA licensing scheme is based on an assumption that everyone residing in a community that had a history of a disproportionately high rate of marijuana charges was disproportionately affected and, therefore, entitled to be eligible to apply for a license to the exclusion of all persons not from such a community…. the [State] Defendants did not offer any evidence that this severe scheme would actually benefit the communities found to have been impacted.”
Hemp Industry Supports Reasonable Regulations
It is important to dispel the false narrative that the hemp industry opposes regulation. The court emphasized that the industry supports reasonable regulations aimed at ensuring health and safety, including testing, labeling, and packaging of intoxicating products.
“[I]t is also important to repeat that [hemp industry] Plaintiffs are not seeking relief from the reasonable health and safety regulations requiring testing, labeling, and packaging of intoxicating products. They seek relief from the onerous and questionable licensing scheme that halted their businesses.”
The primary issue at hand is the onerous and questionable licensing scheme that has severely impacted hemp businesses. As evidenced in this case and in hemp industry sponsored legislation throughout the country, the hemp industry supports reasonable regulations.
State Denied Attempted Shortcut
Immediately after the Circuit Court awarded the preliminary injunction the State filed an appeal, as well as a Petition for Writ of Certiorari to the Supreme Court of Maryland. A Writ of Certiorari orders a lower court to deliver its record in a case so that a higher court may review it. The instant Petition must be seen for what it is: an attempt at a convenient procedural shortcut rather than a necessary review based upon genuine concern for public safety.
The Circuit Court found that there is greater risk to public health and safety to be found in allowing the State's licensing scheme to go forward in its present form, than there is in allowing the hemp industry to continue selling their products while the litigation follows the usual course.
On November 20, the Maryland Supreme Court responded and denied the State's Petition. The Courts order stated that the writ of certiorari was...
"denied as there has been no showing that review by certiorari is desirable and in the public interest."
Moving Forward
These are all great victories for the MD hemp industry, but the battle is far from over. We need your help to continue the battle against corporate interests seeking to monopolize the cannabis and cannabinoid market in Maryland and beyond.
The courts agree that the State's monopolistic licensing scheme is not in the public interest and the Maryland Legislature must understand this. We, the Maryland Hemp Coalition are committed to cultivating a robust and thriving hemp industry in Maryland. This commitment will not waiver and we look forward to working with the Maryland Legislature during the 2024 session to revise the CRA to improve its social justice efforts, while providing true equity for all Marylanders.
Please join us or donate to our efforts. Donations play a vital role in supporting our cause to cultivate a robust and thriving hemp industry in Maryland, paving the way for a prosperous and sustainable future.
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