March 11, 2025

THCA and Bulk Hemp Flower

Tetrahydrocannabinolic acid (“THCA”) is a non-psychoactive cannabinoid that is found in raw cannabis plants. THCA is the acid precursor to tetrahydrocannabinol (“THC”), the psychoactive component of cannabis, and is converted to THC through decarboxylation (heating).

Historically, THCA has been used as an anti-nausea, anti-inflammatory, and anti-seizure supplement and has typically been consumed raw in cannabis juice/smoothies, and often used in dietary supplements.

However, the federal definition of “hemp” was changed with the passage of the 2018 Farm Bill, and hemp began to derive its legality from a .3% or less concentration of delta-9 THC.

Understandably, this definition left unaddressed a loophole of other THC isomers, including delta-8 THC, delta-10 THC, and THCA. These “legal hemp” products containing delta-8 THC and delta-10 THC have created a market filled with consumable products that are extremely potent, often chemically synthesized intoxicants, sometimes stronger than what is available to adults in legal, licensed marijuana dispensaries.

There has been a backlash in the State Legislature to the slew of delta-8, and delta-10 THC consumable products, however, THCA (bulk) flower has largely flown under the radar of the legislature’s goal to roll back hemp.

Is THCA Bulk Hemp Flower Legal For Sale in California? Yes, with an IHEO

As far as bulk flower is concerned, the California Department of Public Health (CDPH) recently stated that “Flower falls under the food category, and delta-9 THC is not allowed because it is an isolate.”

This statement alludes to the passage of the Emergency Regulations in September 2024, whereby the CDPH made it explicitly clear that they have banned synthetic tetrahydrocannabinol (THC) in hemp products.

Accordingly, for an organization interested in brokering and selling wholesale bulk hemp flower, the first compliance step would be to obtain an Industrial Hemp Enrollment and Oversight (“IHEO”) authorization from the CDPH.

To obtain an IHEO, an applicant must submit the required forms and undergo an inspection of the commercial business premises. Consistently, a separate IHEO is required for each place where hemp products are processed, manufactured, packed, repacked, warehoused, or held.

PRODUCTS MADE OR STORED IHEO PERMIT REQUIRED
In-state manufacturers of human food, beverages, dietary supplements, and acidified or low-acid food, along with wholesalers of bulk flower 1. An IHEO and

2. A Processed Food Registration or cannery license, as applicable

In-state and out-of-state manufacturers/wholesalers of hemp extract 1. An IHEO and

2. A Processed Food Registration

In-state manufacturers/wholesalers of inhalable products for sale OUTSIDE of CA 1. An IHEO

The IHEO application requires the submission of product labels (unless the applicant is solely holding the product as a warehouser), detailed information about hemp sources, product types, extraction methods, and entity ownership information.

Fees for the extract IHEO authorization are calculated on gross annual revenue based on sales and revenue from manufacturing, packaging, labeling, or otherwise handling hemp products, for the 12 months preceding the date of application. All other product manufacturers’ fee structure is based on the product type.

Enforcement of Unregistered Hemp Sales Have Begun

A recent enforcement implementation by the CDPH is publishing a public list of “Authorized Industrial Hemp Firms” on its website. This public list facilitates enforcement of the required registrations and serves as a starting point for law enforcement.

By obtaining the above authorizations, you could maintain operations in CA and be added to the list of registered businesses. This would protect you from search/seizure issues and provide a defense to current operations.

If you do not properly register with the CDPH and/or sell products that are over the legal limits set in California, you can face an investigation and potentially criminal charges.

The CDPH may initiate an investigation to determine compliance with AB 45 or other laws. Enforcement may include:

  • Regulatory Warnings
  • Public Health Advisories Warnings
  • Civil Penalties
  • Recall of IH Final Form Products or Extracts
  • Seizure and Embargo of IH Products
  • Seizure of personal and corporate property/bank accounts
  • Criminal Penalties.

Again, for consumable products the standard in CA is no longer .3% delta-9 THC – it is currently 0% THC, unless these products are distributed through the legal cannabis industry. However, for bulk hemp THCA flower, obtaining an IHEO and maintaining a total concentration of less than .3% delta-9 THC, should allow your entity to operate within the confines of the current law.

Differing Status of THCA Flower in Michigan and Tennessee

Some states have changed their regulatory definitions so that THC is defined to include THCA. Others have recently proposed laboratory testing of hemp products to ensure the concentration of delta-9 THC is below the federally legal threshold of .3%.

· Michigan – THCA is included in the Definition of Total THC

For example, the state of Michigan’s definition of THC includes THCA, and cannabis is defined as any product that has a THC concentration of .3% or more, including THCA. Thus, any product with a concentration of THC (including THCA) greater than .3% is considered marijuana and can only be sold by legal operators who are licensed by the MI Cannabis Regulatory Agency (“CRA”).

· Tennessee

The future of hemp products in Tennessee is currently in limbo, as a legal challenge to the state rules awaits trial in June. The TN Dept. of Agriculture’s new rules were meant to go into effect back in December 2024 and would require the testing of all hemp products for delta-9 THC.

Currently, cannabis with a concentration of less than .3% delta-9 THC is considered legal hemp in Tennessee, however, cannabis with a concentration of greater than .3% delta-9 THC is considered marijuana and remains illegal in the “Volunteer State.”

As described, hemp flowers also contain THCA, a nonintoxicating acid that has not yet been outlawed in Tennessee. When heated or smoked, however, the THCA in the plant converts into delta-9 THC – an illegal substance in Tennessee when it is present in greater than trace amounts. The new rules would require testing for the delta-9 THC produced when THCA is heated.

Do You Have Questions About THCA and Bulk Hemp Flower?

Navigating the complex and ever-changing legal landscape of THCA, hemp-derived products, and cannabis regulations requires expert legal guidance. Whether you are a wholesaler, manufacturer, distributor, or entrepreneur looking to enter the California hemp market, compliance is critical to protecting your business from enforcement actions, financial penalties, and potential criminal liability.

At Manzuri Law, our experienced cannabis and hemp attorneys specialize in regulatory compliance, business licensing, and litigation defense. We provide tailored legal strategies to help businesses understand and adhere to California’s Industrial Hemp Enrollment and Oversight (IHEO) requirements, stay compliant with CDPH regulations, and avoid costly legal pitfalls.

With a deep understanding of California’s evolving cannabis and hemp laws—and insight into shifting regulations in states like Michigan and Tennessee—our legal team is equipped to guide your business through every stage of regulatory compliance, risk mitigation, and enforcement defense.

Contact Manzuri Law today to schedule a consultation with our knowledgeable legal team. We are here to help you navigate the legal complexities of the hemp and cannabis industries and ensure your business operates within the bounds of state and federal laws.

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