A coalition of small hemp businesses, farmers, and retailers across Maryland has filed a federal lawsuit challenging a new state law that threatens to shut them out of the market.
The law, Senate Bill 215, takes effect July 1, 2025, and would require businesses to obtain recreational cannabis licenses to sell federally legal hemp products.
The plaintiffs, led by the Maryland Hemp Coalition, argue that the law is a blatant attempt to monopolize the hemp and THC-infused product market—benefiting a handful of state-licensed cannabis companies while forcing out small businesses.
“This law is a model of regulatory overreach and economic favoritism,” said Levi Sellers, President of the Maryland Hemp Coalition. “Maryland is stripping the rights of compliant hemp businesses and handing the market to politically connected cannabis dispensaries. We won’t stand by and let it happen.”
The federal complaint alleges violations of:
- Equal Protection and Due Process under the U.S. Constitution
- The Dormant Commerce Clause, by restricting interstate sale of federally legal hemp goods
- The Takings Clause, by eliminating existing business rights without compensation
Notably, the lawsuit follows a 2023 preliminary injunction granted by a Maryland state court, which found the original Cannabis Reform Act unconstitutional. Senate Bill 215, the Coalition argues, is simply a workaround aimed at continuing the monopolization of the market.
“This isn’t just about Maryland,” said Sellers. “It’s about a dangerous precedent where states use cannabis legalization as cover to eliminate lawful hemp competition and centralize power. The federal government must act—and we’re asking the courts to do so now.”
