Cannabis brands sell on terms because stores expect it. Then the terms slip. Net 30 becomes 60, then 90, and the brand is financing the store's inventory with money it needs for payroll. Industry estimates of unpaid cannabis invoices run into the billions of dollars, and regulators have noticed: in 2024 Massachusetts' Cannabis Control Commission put extended and delinquent accounts receivable on its agenda, noting that unpaid balances create financial challenges for everyone in the supply chain.
So the first question a brand asks when a dispensary won't pay is a fair one: does my state have a rule? This guide answers it for twelve states. Where a rule exists, we quote it and link the regulator's text. Where we couldn't find one, we say so plainly instead of guessing.
3
states in this guide with a payment rule in effect: New York, Washington, Rhode Island
2
states with a proposal in progress: Massachusetts and Michigan
7
states where we found no rule, so the contract governs
State-by-state status, as of October 2026
Each card says whether a rule is in effect, proposed, or not found. "No rule found" means we searched the regulator's published rules and guidance and found nothing that sets payment terms between licensees. It doesn't promise that no rule exists, so confirm with your state before you rely on it.
New York
Rule in effectNew York regulates credit sales between licensees. A retailer buying on credit must pay in full within 30 days of receiving the product. A supplier that isn't paid reports it to the Office of Cannabis Management (through Metrc since 09/15/2026) within 7 calendar days, and a reported retailer can only buy cash on delivery until it's cleared.
Read: New York delinquent payment reporting · OCM guidance (revised 10/2026)
Washington
Rule in effectNo credit at all. A licensee buying cannabis must pay at or before delivery. Checks count as payment only if they're sent by the first business day after delivery and deposited within five business days. Delaying payment beyond that is treated as an unlawful attempt to buy on credit.
Rhode Island
Rule in effectEvery sale needs a written contract or purchase order with a payment due date. If the parties don't agree on a date, payment is due within 30 calendar days of delivery or pickup.
Massachusetts
ProposedWe found no current rule that sets payment terms between licensees. Bills in the 2025–2026 session would cap credit at 60 days and create a public delinquent list. As of our last check, both were in Ways and Means committees, not law.
Read: Massachusetts payment rules · H.4534 · S.82
Michigan
ProposedWe found no Michigan rule that sets payment terms between licensees, so your contract terms govern. The Cannabis Regulatory Agency's 2025 draft rules would have let it deny a license over an unpaid-invoice court judgment. The revised draft posted for its 2026 hearing doesn't appear to include that language, and the rules weren't final as of our check.
Read: Michigan payment rules
California
No rule foundWe found no California law or Department of Cannabis Control rule that sets payment terms between licensees. Two bills tried (AB 766 in 2023 and AB 2888 in 2024) and both failed.
Read: California payment rules
Colorado
No payment ruleThe Marijuana Enforcement Division says contracts between licensees are enforceable and points brands to their contracts and the civil courts. It does not step into contract disputes, though it may investigate if a failure to pay points to a rule violation.
New Jersey
No rule foundAs of October 2026, we found no Cannabis Regulatory Commission rule that sets payment terms or credit limits between licensees. Your contract terms govern.
Illinois
No rule foundAs of October 2026, we found no Illinois rule or enacted bill that sets payment terms between cannabis licensees. Your contract terms govern.
Oregon
No rule foundAs of October 2026, we found no OLCC rule that sets payment terms between licensees. Oregon's recent compliance push has been about unpaid state taxes, not invoices between businesses.
Missouri
No rule foundAs of October 2026, we found no Division of Cannabis Regulation rule that sets payment terms between licensees. Your contract terms govern.
Maryland
No rule foundAs of October 2026, we found no Maryland Cannabis Administration rule that sets payment terms between licensees. Your contract terms govern.
What to do where the law says nothing
In most states, nobody is coming to enforce your terms for you. The rules that exist mostly kick in after the money is already late. What actually gets a store to pay is the same everywhere: clear terms, steady follow-up, and a real next step when the follow-up is ignored.
What lets invoices age
Terms agreed by phone. A rep who chases when there's time. No record of who promised what. A balance that sits until someone threatens to sue.
What gets them paid
Terms in writing on every invoice. A pay link in every message. Reminders that firm up on a schedule. A written promise, checked on the date, and a final notice when it's missed.
- Put terms in writing. A due date on the invoice is the one thing every state's process, and every court, will ask for. In Rhode Island, a missing date means the 30-day default applies.
- Follow up early and on a schedule. The longer an invoice sits, the more likely it is to become a dispute instead of a payment.
- Write down every promise. "We'll pay Friday" is worth something only if someone checks on Friday.
- Decide your last step before you need it. Stop shipping on credit, put the account on hold, report the balance where your state allows it, or hand it to an attorney. Only say what you'll really do.
For the full playbook, see how to get paid by dispensaries.
Where ShelfSpace fits
ShelfSpace is software for the collecting itself, in any state. It sends your invoices and your reminders in your brand's name, so you keep the relationship and no outside agency gets between you and the store.
A pay link on every invoice
Each store gets a standing Pay Now link that needs no login. It rides on the invoice and on every reminder, so paying you is always one click away.
Reminders on a schedule, in your name
Reminders go out on the schedule you pick and firm up as the invoice ages. Your sales rep can be copied on every one.
Promises written down
When a store says it will pay Friday, log it. Reminders on those invoices pause, ShelfSpace checks QuickBooks on the date, and the promise is marked Kept, Kept late, Partly paid, or Missed.
A final notice on your letterhead
Once an invoice passes your mark (60 days late unless you pick another number), send one page with a pay-by date and only the consequences you will really carry out. Reporting the balance to the state regulator is one of the five choices, and all five start unchecked.
All of it shows up in AR Aging, your list of who owes you sorted by how late they are. So when a rule or a court asks what happened, you have the dates: when the invoice went out, what the store promised, whether it kept that promise, and the letter you sent. See the full system on Collections, Promise to Pay and Final Notice.
This page explains public rules in plain English. It isn't legal advice. Before you report a store, sue, or change your credit terms, check with your own attorney.
Sources
- New York Office of Cannabis Management, Delinquent Payment Reporting Guidance (revised 10/19/2026)
- New York OCM, Retailer's Guide to the C.O.D. List (03/2024)
- Washington Administrative Code 314-55-115, Methods of payment for cannabis licensees purchasing cannabis
- Rhode Island 560-RICR-10-10-2, Operational Requirements for Cannabis Establishments (amended effective 03/17/2026)
- Massachusetts H.4534 (2025–2026), new draft of H.180, An Act regularizing accounts receivable in the cannabis industry
- Massachusetts S.82 (2025–2026), An Act regularizing accounts receivable in the cannabis industry
- Massachusetts Cannabis Control Commission, May 2024 policy meeting packet (accounts receivable discussion)
- Michigan Cannabis Regulatory Agency, Summary of Proposed Changes to the Marihuana Rules (updated 11/2024)
- Michigan LARA, Update on the Marijuana Rules Promulgation (05/14/2026)
- California AB 766 (2023–2024), Cannabis: invoices: payment (status: failed)
- California AB 2888 (2023–2024), Cannabis: invoices: payment (status: failed)
- Colorado Marijuana Enforcement Division, Industry Bulletin 23-01: Contracts Between Regulated Marijuana Businesses Are Enforceable (03/09/2023)
Sources last checked 10/27/2026. Rules change: confirm the current text with the regulator before you rely on it.