New York Cannabis Delinquent Payment Rules: 30 Days, a Notice of Default, and the C.O.D. List

A store in Brooklyn took a delivery on credit. Day 30 came and went. Now a state rule decides what you do next, on a schedule you don't set, and skipping a step can put your own license at risk.

New York is one of the few cannabis markets with a written, enforced rule for New York cannabis delinquent payment reporting. It lives in Section 124.2 of Title 9 of the New York Codes, Rules and Regulations (9 NYCRR § 124.2), and the Office of Cannabis Management (OCM) explains it in its Delinquent Payment Reporting Guidance (Rev. 10/19/2026) and its Delinquent Payments FAQs (Rev. 09/16/2026). Everything below comes from those two documents and the OCM Delinquent Payment Reporting page.

Who the rule covers

The guidance applies to licensed suppliers and retailers. It defines a supplier as a licensed distributor, cooperative, microbusiness, Registered Organization with Dispensing (ROD) or Registered Organization Non-Dispensing (ROND) authorized to distribute cannabis products to licensed retailers. The retailer is the dispensary buying from them.

Selling on credit is a choice. In the FAQ's words, suppliers "MAY, but are not required to" sell on credit. If you do, the rules below apply to every credit sale. If a separate distributor sells your product to the store, confirm with them which of you holds the reporting duty for those sales.

The 30-day rule

A retailer buying on credit must pay for the product in full within 30 days, unless the Cannabis Control Board approves otherwise. The guidance is specific about when the clock starts. The payment period begins on the date the products are electronically received by the retailer and ends on the thirtieth day after that. The last day is the final payment date.

That detail matters more than it looks. Your invoice may say Net 30 from the invoice date, but the state counts from the day the store accepts the transfer in Metrc. If those two dates differ, the state's date is the one that decides whether a store is delinquent. OCM publishes the exact dates each year in its 2026 Credit Calendar.

You may see a 90-day figure quoted in older articles. The current OCM guidance and FAQs say 30 days, unless the Cannabis Control Board approves otherwise, and neither document mentions a 90-day period.

The timeline, step by step

The written notice of default

Before a store lands on the list, it must hear from you. The guidance says the supplier must send a written notice of default to a retailer that missed its final payment date, and sets three conditions:

• How it's sent: by first class mail, unless you and the retailer agreed on another written form of notice.
• When: on or before the notification dates the Office sets on its Credit Calendar. The FAQ puts it as no later than 7 calendar days after the final payment date.
• What you keep: a copy of the notice, for at least five years from the date you created it, readily retrievable if the Office asks (9 NYCRR § 125.13).

The OCM's own FAQ for retailers says "No retailer should be surprised that they have been added to the C.O.D. list." The notice is why.

How to report a dispensary for non-payment in New York

Reporting moved to Metrc. The guidance says that effective 09/15/2026, any new report of a delinquent payment must be completed in Metrc, following Metrc Bulletin NY_IB_0025, "Delinquency Tracking – Cash on Delivery (COD)." The FAQ adds that the old C.O.D. Reporting Platform took reports for deliveries made before 09/15/2026 only through 10/22/2026, and its delinquency reporting was turned off on 10/23/2026.

Two rules people miss:

• It's mandatory. The FAQ says reporting "is not optional; it is required pursuant to 9 NYCRR §124.2 (d)(1)." A supplier who fails to report may face disciplinary action, and the Board may revoke, cancel or suspend a license for failing to comply with § 124.2.
• Report payment, too. When a reported store pays in full, you must tell the Office within 1 business day. Report it where you reported the delinquency: in Metrc for Metrc reports, on the legacy platform for legacy reports, per OCM's "How to Report Payment in Full" instructions. Do not report a partial payment.

Life on the C.O.D. list

A store reported as having an unpaid balance older than 30 days goes on the C.O.D. (cash on delivery) list. Suppliers with the right Transfer Menu permissions can see the list in Metrc under Transfers, COD List, Retailers on COD. When you create a transfer to a store on the list, Metrc won't offer credit terms. You can still sell to that store, for cash at delivery. The guidance defines cash broadly: currency, certified check, money order, electronic funds transfer, a bank officer's check or draft, or a check drawn on the licensee's account.

Getting off the list takes payment in full to every supplier that reported the store, and each of those suppliers reporting it. The store comes off at the next publication date. Until then, the Office may approve credit sales in writing if three conditions are met: the owed supplier has reported the payment in full, the supplier who wants to extend credit asks the Office in writing, and the store has no other outstanding credits with other suppliers.

Disputes

If a store thinks it was reported in error, it should first work it out with you. If you can't resolve a dispute over whether it paid, how much is due or how much product was delivered, the store can file a dispute through the C.O.D. Standing view in its Metrc account and upload documents. Both sides send statements to CODReporting@ocm.ny.gov, the Office decides, and the store can appeal and ask for a hearing under 9 NYCRR Part 133. Your records are your defense, which is why the guidance asks you to keep invoices, receipts, purchase orders, delivery receipts and notices for five years.

The Office won't collect for you

This is the part that surprises brands. OCM's page says "The Office is not a collections agency or payment enforcer," and FAQ 16 says licensees are responsible for pursuing payment of their outstanding invoices. The C.O.D. list protects the next supplier. It doesn't put money in your account. The best outcome is a store that pays before day 30, so you never need the list at all.

How ShelfSpace helps you stay ahead of day 30

ShelfSpace is accounts receivable software for cannabis brands. Reporting happens in your Metrc account, and ShelfSpace doesn't file OCM reports for you. What it does is make paying you easy and keep the paper trail the rules ask for:

• A Pay Now link on every invoice. Each store gets a standing pay link with no login, so paying before the final payment date takes one click.
• Reminders in your name. Once an invoice is past due, reminders run on your schedule and firm up as it ages, with the pay link in every one.
• Promises you can check. When a store says "we'll pay Friday," Promise to Pay logs the invoices, amount and date, then checks QuickBooks and marks it Kept, Kept late, Partly paid or Missed. "Partly paid" is exactly the case the state says not to report as paid in full.
• A dated letter on your letterhead. Final notice letters carry your words, a pay-by date and only the consequences you choose, including reporting the balance to the state regulator. The letter is offered once an invoice passes your mark, which you can set in Settings to fit New York's timeline. It's sent by email, so if your agreement with the store doesn't make email a valid written notice, download the PDF and mail it first class. Keep a copy either way.
• One view of who's late. AR Aging shows every open invoice by how late it is, filterable by rep or store, so the accounts nearing the final payment date are in front of you.

One caution if you offer payment plans in New York: the guidance has no exception for them. The 30-day rule applies unless the Cannabis Control Board approves otherwise, so check with OCM before you agree to terms that run past the final payment date. For more on getting wholesale invoices paid on time, see Cannabis Net Terms: How to Get Invoices Paid and Collect on Overdue Cannabis Invoices.