New York cannabis rules, explained for operators

What is the 30-day credit rule for New York dispensaries?

Checked against OCM pages and the regulation text on September 6, 2026.

The rule, in the regulation's words

Part 124 of Title 9 of the New York Codes, Rules and Regulations covers how supply-side licensees deal with retailers. Section 124.2 is titled "Terms of Sale." It says distributors, microbusinesses, and other supply licensees may accept payment on credit as long as:

"retail dispensaries and on-site consumption licenses purchasing cannabis products on credit pay their balance due within thirty (30) days, unless otherwise approved by the Board"

9 NYCRR 124.2(c)(2), effective September 27, 2023. Read the section.

Three things follow from that sentence.

• Credit is allowed. Nothing in the rule forces a supplier to offer it. The Office's FAQ puts it plainly: suppliers "MAY, but are not required to, accept payment on credit from retailers." Source: OCM Delinquent Payments FAQ, supplier question 1.
• Thirty days is the ceiling. A supplier can ask for payment sooner. A supplier cannot give you longer without Board approval. Source: 9 NYCRR 124.2(c)(2).
• The 30 days run from delivery. The regulation text does not name the start date. The Office's guidance does. Its reporting page says retailers "must pay the bill within 30 days of the cannabis product being delivered." Source: OCM Delinquent Payment Reporting.

How the payment clock runs

The Office publishes a Credit Calendar each year. It lists every delivery date with two dates next to it. Source: OCM 2026 Credit Calendar.

The column headers are "Date of Delivery," "Final Payment Due 30 Days After Delivery," and "Notification of Delinquency Due to Retailer and the OCM." Here are three rows from the 2026 calendar.

Source: OCM 2026 Credit Calendar. Confirm any date against the calendar itself before relying on it.

The final payment date is 30 calendar days after delivery. The notification date is the deadline for the supplier to tell you and the Office that you are in default. The FAQ sets that deadline at "no later than seven (7) calendar days following the final payment date." Source: OCM FAQ, supplier question 6.

The calendar is the reference the Office expects suppliers to use. Reading your own delivery dates against it tells you the exact day a supplier is allowed to report you.

What counts as paying

The Office defines payment in full as "a payment received by a supplier that satisfies the total invoice amount due (less late fees or interest) for a particular delivery date." Source: OCM FAQ, supplier question 11.

Two points in that definition matter for your bookkeeping.

• The clock is per delivery. Each delivery date has its own invoice and its own 30-day window. Source: OCM FAQ, supplier question 11; Credit Calendar structure.
• Partial payment does not stop the clock. The FAQ tells suppliers, "Do not report partial payment." Only payment of the whole invoice amount gets a delivery off the delinquency record. Source: OCM FAQ, supplier question 9.

Late fees and interest are a separate matter between you and the supplier. A supplier may charge them. A supplier cannot use unpaid late fees to keep you on the C.O.D. list once the invoice amount itself is paid. Source: OCM FAQ, supplier question 12.

What happens when the clock runs out

The sequence after day 30 is fixed by the regulation and the Office's guidance. It runs in this order.

1. The supplier sends a written notice of default. The regulation requires notice "by first class mail or by such other method as contemplated or permitted by or under the applicable agreement." The Office's guidance requires this notice within 7 calendar days after the due date. Source: 9 NYCRR 124.2(e)(1); Retailer's Guide to the C.O.D. List.
2. The supplier reports you to the Office. This is mandatory for the supplier. The regulation directs suppliers to "report retailers who are delinquent in payment for cannabis products to the Office." A supplier who fails to report is itself in violation. Source: 9 NYCRR 124.2(d)(1); OCM FAQ, supplier questions 3 and 18.
3. The Office reviews the report. The Office's reporting page says your store is placed on the list "Once the Office is notified, has reviewed the report, and has determined the report to be valid." Source: OCM Delinquent Payment Reporting.
4. Your store goes on the C.O.D. list. The Office compiles the list and furnishes it to supply licensees. The list is updated every Wednesday. Source: 9 NYCRR 124.2(e)(2); OCM FAQ, retailer question 4.
5. Credit stops. Suppliers may "not sell cannabis products on credit to any retailer reported and found by the Office to have a delinquent payment due." Cash sales are still allowed. Source: 9 NYCRR 124.2(d)(2) and (e)(2); OCM FAQ, supplier question 19.
6. You stay listed until every reported invoice is paid. If more than one delivery is outstanding, you "will remain on the C.O.D. List until all credit purchases have been paid in full." Source: OCM FAQ, retailer question 3.

There is a further consequence beyond the list. The Cannabis Control Board "may revoke, cancel, or suspend a license" for failing to follow section 124.2. The Office's FAQ repeats this for retailers who do not pay. Source: 9 NYCRR 124.2; OCM FAQ, retailer question 8.

If you think a report is wrong

The regulation gives the Office authority to settle disputes about "the fact of payment or as to the amount due for such cannabis products or as to the quantity of the cannabis products sold or delivered." Source: 9 NYCRR 124.2(f).

The Office's guidance says to contact the reporting supplier first. If that does not resolve it, you can ask the Office in writing to review the facts. Requests go to CODReporting@ocm.ny.gov. You can appeal the Office's determination and request a hearing. Source: OCM FAQ, retailer questions 6 and 7; 9 NYCRR 124.2(f).

What this means for your store

• Write the delivery date on every credit invoice the day it arrives. The 30 days start there, according to the Office's guidance. Invoice date and receipt date can differ.
• Look up each delivery date on the OCM Credit Calendar and record the final payment date beside it. That is the last day you can pay without a supplier being required to report you.
• Treat day 30 as the deadline, whatever your supplier says in conversation. A supplier cannot extend the term past 30 days on its own. Only the Board can approve a longer term, per 9 NYCRR 124.2(c)(2).
• Pay the whole invoice for a delivery date. A partial payment leaves that delivery unpaid in the Office's eyes.
• Keep proof of payment with the date the supplier received it. Removal from the list depends on the supplier reporting your payment, and your records are what settle a dispute.
• If a delivery is going to be late, expect a written notice of default and a report to the Office within about a week of the final payment date. The supplier does not have discretion to skip either step.

Sources

• 9 NYCRR 124.2, Terms of Sale (Cornell LII)
• OCM, Delinquent Payment Reporting
• OCM, Delinquent Payments FAQs, rev. 1/1/2026 (PDF)
• OCM, Retailer's Guide to the C.O.D. List (PDF)
• OCM, 2026 Credit Calendar
• OCM, Seed-to-Sale page (Metrc transition notice)