Terpenes are organic compounds that contribute to the distinctive flavor and aroma of cannabis. They are gaining significant traction in the cannabis industry for their health benefits and ability to enhance both the sensory and aromatic experience of cannabis products.

Terpene use in cannabis products, whether inhalable or edible, is regulated on a state-by-state basis. And while many regions do not yet have specific rules or regulations, increasingly the country's largest markets are cracking down on what is and is not an allowable additive.

In California, new rules have legislated allowable terpenes and terpenoids, flavonoids, polyphenols, and other naturally occurring phytochemicals. It's more important than ever to understand these new regulations and how they affect the terpene profiles you work with. 

7 States and Counting. Are You Prepared?

Synthetic terpenes are already banned in the following states:

• California
• Connecticut
• Massachusetts
• Michigan
• Missouri
• Nevada
• New York

Lab Effects remains your 100% natural safe supply. When other suppliers are panicking because their terpene portfolios are stacked with synthetics, Lab Effects is steadfast. We are the only terpene source with a 100% natural portfolio.  

We have assisted clients navigating the documentation requirements for each state, including California. We’ll walk you through the process and get you up and running within hours.

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Overview of Terpenes in Cannabis

Terpenes are found in nearly all plants, including cannabis. They are critical in defining various plants’ aromas and flavor profiles. Some of the most common terpenes in cannabis include beta-myrcene, beta-caryophyllene, limonene, alpha- and beta-pinene, and linalool.

Terpenes are largely responsible for the unique profiles representing well-known cannabis strains.  However, when cannabinoids are extracted from the cannabis plant, terpenes are often left behind. Capturing terpenes, whether from cannabis plants or other botanicals, allows them to be added back into products, either to mimic an original strain profile,control therapeutic properties, or create a new and unique aroma and flavor.

Market demand

Demand for terpenes in the cannabis sector is booming, particularly as cannabis legalization expands across North America, Asia, and Europe.

This growth is driven by consumer preferences for enhanced flavors and fragrances, with terpenes incorporated into various products such as edibles, beverages, and topical applications. 

Applications in cannabis products

Companies are increasingly adding terpenes to cannabis products to enhance flavor and increase therapeutic effects. Alongside cannabinoids like THC and CBD, naturally occurring or added terpenes are thought to promote what is known as the "entourage effect."

Terpenes are not only essential for defining cannabis’ sensory characteristics but are also becoming pivotal in product formulation within the cannabis industry. Their potential health benefits and market demand highlight their importance in current and future applications, from topicals and vape formulations to edibles and beverages.

Cali Compliant: Overview of California's Evolving Regulations on Cannabis and Terpenes

California's cannabis regulations have been evolving since its initial legalization in 1996 for therapeutic use and the subsequent legalization of cannabis for recreational use in 2016.

In 2021, California consolidated its cannabis regulatory agencies into the Department of Cannabis Control (DCC). This move aimed to streamline oversight and enforcement across the industry, which had previously been managed by multiple agencies but is still impacted by local jurisdictions.

Under the Medicinal and Adult Use Cannabis Regulation and Safety Act (MAUCRSA), businesses must obtain both local and state licenses to operate legally. This includes strict compliance with safety regulations, product testing, and labeling requirements to ensure consumer safety.

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Stay on top of testing requirements with Lab Effects.

Our terpenes are ready for testing and meet all California cannabis testing standards.

Contact us directly

+1.720.524.6369

info@labeffects.com

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Understanding California’s DCC Regulations

Recent regulatory changes in California have impacted the use of terpene and flavor-enhanced products, particularly those intended for inhalation. If you work with terpenes to enhance your final products, here are the key regulatory changes to note:

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Definition and composition of terpenes

The Department of Cannabis Control (DCC) has updated the official definition of terpenes to include not only terpenes and terpenoids but also flavonoids, polyphenols, and other naturally occurring phytochemicals that contribute to cannabis’ aroma or flavor.

This ensures that any added terpenes must be naturally occurring and consistent with those found in cannabis plants, particularly when used in inhalable products. (Naturally occurring terpenes would include cannabis-derived and botanical terpenes.)

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Prohibition of artificial flavors

New regulations also explicitly prohibit the use of artificial or synthetic terpenes in cannabis products intended for inhalation.

Vapes, flower, and pre-rolls may only contain natural flavor and aromatic compounds that contribute to the natural flavor or aroma of cannabis.

Prohibited flavors include but are not limited to bubblegum, cherry, chocolate, cinnamon, clove, cocoa, coconut, coffee, grape, licorice mango, menthol, mint, orange, pineapple, popcorn, strawberry, and vanilla.

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Limitations on inhalable products

Under California Code Title 4 section 17303.1, only certain components can be included in inhalable cannabis products: cannabis, cannabis concentrates, rolling paper leaf, pre-roll filter tips, FDA-approved inactive ingredients for inhalation, and naturally derived terpenes.

Section 15000(ppp) defines terpenes as “terpenes, terpenoids, flavonoids, polyphenols, and other naturally occurring phytochemicals and secondary metabolites contributing to the aroma or flavor of cannabis.”

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Third-party testing

Testing laboratories play a crucial role in ensuring the safety of cannabis products for consumers. The DCC mandates that all batches of cannabis goods undergo testing before they can be sold. These labs verify that products are free from contaminants and accurately labeled with the correct amounts of cannabinoids and terpenes.

Testing labs are required to analyze cannabis products for various substances, including:

• Cannabinoids and terpenes
• Foreign material
• Heavy metals
• Microbial impurities
• Moisture content and water activity
• Mycotoxins
• Residual pesticides
• Residual solvents and processing chemicals

Results from testing labs are documented on a Certificate of Analysis (COA), indicating whether each batch has passed or failed testing for the specified substances. Laboratories are prohibited from altering COAs after issuance without prior approval from the DCC. Within one day of completing testing, laboratories must upload the COA to the track-and-trace system and email a copy of the COA to the DCC at testinglabs@cannabis.ca.gov.

If a batch fails the testing, it can either be destroyed by the distributor or remediated by a manufacturer, who must submit a remediation plan to the DCC for approval. After remediation, the product must be retested to confirm contaminants have been removed before it can be sold.

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Ensure the safety and transparency of your products.

Lab Effects offers terpene solutions that enhance product quality and foster consumer trust. Contact us to learn more

+1.720.524.6369

info@labeffects.com

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California’s DCC Packaging and labeling requirements

The DCC has strict guidelines for final form cannabis goods, whether or not they include terpenes. All cannabis goods must be in tamper-evident, child-resistant packaging that is resealable (for packages containing more than one serving) and opaque (for packages containing edible cannabis products).

Labels have two parts: the “primary panel,” which is the portion of the label most likely to be displayed directly to the consumer at retail, and the “informational panel,” which is any other part of the label. There are two types of labeling guidelines; the first is for non-manufactured products in final form, and the second is for manufactured cannabis products in final form.

The universal symbol for cannabis, intended to clearly inform consumers that the product contains it, is mandated to be on the primary panel of all cannabis goods sold in California. This universal cannabis symbol can be downloaded from the DCC and used on the packaging; nothing may be altered except for the size of the symbol, which must be at least ½ inch by ½ inch at printing. It must be displayed in either black or white on product packaging.

For products with multiple layers of packaging, the symbol is only required on the immediate container surrounding the product, not all layers.

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Disallowed labeling

Items prohibited from appearing on either part of the label include anything that could be perceived as false, misleading, or intended to improperly influence consumers. According to the DCC, prohibited content includes but is not limited to:

• The name of any California county unless it is the source of 100% of the cannabis
• Any and all unproven health claims
• Marketing of a cannabis good as an alcoholic beverage
• Designs deemed attractive to children, including
  
  • Cartoons
  • Images popularly used to advertise to children
  • Imitations of candy labeling
  • The words “candy,” “candies” or anything similar
• Use the words “organic” or “OCal” unless you are registered with the California Department of Food and Agriculture or California Department of Public Health.

Packaging also may not include any picture of the product, such as edibles (as noted, edibles must be in opaque packaging).

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Inhalable labeling requirements

Inhalable cannabis products, including vape cartridges, are particularly under the microscope in California due to their innate attractiveness to minors and the state’s commitment to preventing the use of vapes and other similar products by anyone under the age of 21.

“Cannabis products intended for inhalation must meet all labeling and advertising requirements in the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), which begins at Business and Professions Code (BPC) section 26000, and the DCC’s regulations. This includes ensuring that all ingredients are listed on the label and that any labeling, advertising, and marketing comply with restrictions on content that is attractive to minors under the age of 21. (BPC §§26120 and 26152; CCR §§15040, 17300, 17406, and17408).”

In addition, the Office of Environmental Health Hazard Assessment (OEHHA) has expanded Proposition 65 warning requirements. New regulations mandate that cannabis products must include health warnings about the potential risks associated with cannabis smoke and delta-9 THC exposure, as well as any known carcinogens.

As of July 1, 2024, cannabis cartridges and integrated vaporizers cannot claim to be disposable or imply that they can be discarded in regular trash or recycling streams. Any claims regarding recyclability must meet specific criteria to avoid being considered misleading.

Products cannot use terms like "recyclable" unless they adhere to defined standards regarding their materials and components. Cannabis businesses must ensure their labeling complies with these new regulations to avoid penalties. The DCC has emphasized the importance of accurate labeling that does not mislead consumers regarding product contents or health risks.

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Why Comply With California’s Cannabis and Terpenes Regulations?

Compliance with current and future California legislation regarding cannabis and terpenes builds consumer trust and enhances brand reputation. While the deadline for compliance in most cases ended on January 1, 2024, clearly not all cannabis retailers are yet in compliance.

By moving quickly to ensure you comply with each new change in regulation, you can gain the competitive edge of offering compliant, high-quality terpene products in the market.

This is better for your investors, as operating legally helps to avoid lawsuits, fines, and product recalls, and better for consumers, who can be confident they are using safe, compliant products that are marketed appropriately and don’t put children at risk.

Sourcing 100% naturally derived terpenes can also make your brand more attractive to health-conscious consumers seeking cannabis and terpene-infused products without additives, synthetics, or artificial ingredients.

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Non-compliance consequences

Disciplinary measures for non-compliance with California laws typically include a substantial fine and/or suspension or revocation of your license. Depending on the specifics of the violation(s), you may also be subject to state-forced product recalls, product seizures, or quarantines. Lost products and/or lost revenues can significantly harm both your business and your reputation.

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Don’t risk financial loss or market recall.

Contact Lab Effects today to secure compliant, all-natural terpenes for your products.

+1.720.524.6369

info@labeffects.com

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Lab Effects: Your Partner for Compliant Terpenes

At Lab Effects, we’re here to support you as you navigate California rules and regulations and evolving legislation in other states. We approach these challenges across three broad initiatives:

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A commitment to compliance

We’re fully dedicated to meeting California’s current and future terpene regulations and helping you do the same with your terpene-inclusive products. Whether you are seeking to enhance vape cartridges with natural terpenes to capture features of well-known cannabis strains or trying to develop your own bespoke alcoholic and non-alcoholic beverages, we’re behind your process, helping you stay compliant with state laws. 

We are the gold standard of terpenes. Lab Effects is the only terpene supplier in the entire industry that holds cGMP Certifications under a tightly controlled quality assurance program for multiple FDA codes covering 21CFR 117 / 21CFR 111, ISO, and HACCP all for a large scope of operation. All of these certifications are maintained with annual audits conducted by a globally recognized certification body that is ANAB/ANSI Accredited. No other supplier meets this level of compliance and quality control. 

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All-natural product offerings

All of our terpenes are 100% naturally derived from cannabis or botanical sources and 100% compliant with California law as currently written. We do not manufacture or offer synthetic terpenes. Our products are simply and factually named with no obfuscation, confusing terms or obscure branding, and come in various formats, including flowable powders for capsule machine filling, water soluble liquid and powder nano-emulsions, as well as alcohol based emulsions for beer and spirits. We do not add any of the very frequently seen adulterants used by most industry suppliers to artificially boost aromas with synthetic industrial odorizers, “flavorants”, or Volatile Sulfur Compounds (VCS) (“Cannasulfurs”). We do not hide flavoring in cannabis profiles, we clearly label all items that contain flavoring as an intentional product category, not used to fool the buyer into believing that strains actually smell like candy or similar.   

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A collaborative approach

In addition to our pledge to make sure you have access to 100% compliant terpenes that fit all your product development goals, Lab Effects is also committed to working with regulators and industry partners to ensure we stay ahead of ongoing regulatory changes and updates made by state departments so you never have to worry about your terpene supply chain. Terpenes have so much to offer, and it’s our goal to be a part of the bigger picture as terpenes become better understood and more fully utilized.

Explore Lab Effects' range of compliant, all-natural terpenes today. You can contact us directly with any questions or to obtain more information about our natural cannabis-derived and botanical terpene products.

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