New York cannabis rules, explained for operators

What happens if a supplier reports my dispensary for late payment?

Q: What happens if a supplier reports my dispensary for late payment?

If a licensed supplier reports your New York dispensary for not paying a credit invoice within 30 days of delivery, the Office of Cannabis Management reviews the report and, if it finds the report valid, places your store on the C.O.D. list. Under 9 NYCRR 124.2(d) and (e), no licensed supplier may then sell to you on credit until the reported invoice is paid in full. Before reporting, the supplier must send you a written notice of default within 7 calendar days after the due date, and the supplier uploads that notice with its report. Once you pay the invoice amount in full, the supplier must report the payment to the Office within one business day, and your store comes off the list at the next Wednesday update. Disputes go first to the supplier and then, in writing, to CODReporting@ocm.ny.gov.

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

If a supplier reports your dispensary for a late credit invoice, the Office of Cannabis Management reviews the report, and if it finds the report valid, puts your store on the C.O.D. list. From that point no licensed supplier can sell to you on credit until the reported invoice is paid in full.

The process is set by 9 NYCRR 124.2 and the Office's delinquent payment guidance. You should see it coming. The supplier has to send you a written notice of default before it reports you, and it has to upload that notice with its report.

The supplier does not have a choice

Reporting is mandatory. Section 124.2(d)(1) directs distributors and other supply licensees to "report retailers who are delinquent in payment for cannabis products to the Office." The Office's reporting page says: "Delinquent payment reporting is not optional." Source: 9 NYCRR 124.2(d)(1); OCM Delinquent Payment Reporting.

The Office's FAQ says a supplier that fails to report is itself in violation. A supplier who tells you it will "let this one go" is describing something the regulation does not allow. Source: OCM Delinquent Payments FAQ, supplier question 18.

The report, step by step

Day 30 passes without payment in full. The 30 days run from delivery. How the clock runs is covered in a separate explainer. Source: 9 NYCRR 124.2(c)(2); OCM Delinquent Payment Reporting.
The supplier sends you 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 requires it within 7 calendar days after the due date. Source: 9 NYCRR 124.2(e)(1); OCM Retailer's Guide to the C.O.D. List.
The supplier files the report with the Office. The Office's supplier instructions describe the form. The supplier selects your license from a drop-down, enters "the amount due in dollars and cents (over 30 days)," enters "the date cannabis products were delivered to the retailer with a balance due after 30 days," and uploads "a copy of the written notice of default that was sent to the retailer." Source: OCM C.O.D. List Supplier Instructions, rev. 1/1/2026.
The notice of default has required contents. Per the supplier instructions it must show the date the notice was sent, your business name, license number, date of delivery and amount due, and the supplier's business name and license number. Source: OCM C.O.D. List Supplier Instructions, rev. 1/1/2026.
The Office reviews the report. The 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.
Your store appears on the next Wednesday's list. The Office updates the C.O.D. list every Wednesday and furnishes it to supply licensees. Source: 9 NYCRR 124.2(e)(2); OCM Delinquent Payments FAQ, retailer question 4.

The deadline for the supplier's report is "no later than seven (7) calendar days following the final payment date." The Office's Credit Calendar lists that date for every delivery date. Source: OCM Delinquent Payments FAQ, supplier question 6; OCM 2026 Credit Calendar.

What the report does to your credit

Credit stops with every supplier, not only the one that reported you. Section 124.2(d)(2) bars supply licensees from selling on credit "to any retailer reported and found by the Office to have a delinquent payment due." Receipt of the list counts as knowledge of who is on it. Source: 9 NYCRR 124.2(d)(2) and (e)(3).
Cash sales continue. The FAQ says suppliers "can sell cannabis products to retailers who appear on the C.O.D. list on a cash only basis." Cash includes checks on your business account and electronic transfers, but not credit cards. Source: OCM Delinquent Payments FAQ, supplier question 19; OCM Retailer's Guide to the C.O.D. List.
The Office can allow an exception. Section 124.2(g) lets the Office permit sales to a retailer that has received a notice of default on terms other than cash "on good cause shown." Source: 9 NYCRR 124.2(g).
The Board can go further. Retailers who fail to pay on time are in violation of 124.2, and the Board "may revoke, cancel, or suspend a license" on that basis. That is a separate decision, not an automatic result of being listed. Source: OCM Retailer's Guide to the C.O.D. List; OCM Delinquent Payments FAQ, retailer question 8.

How you find out

The Office does not send you an alert when you are listed. The notice you get is the supplier's written notice of default, which arrives before the report. The Retailer's Guide says: "No retailer should be surprised that that they have been added to the C.O.D. list." Source: OCM Retailer's Guide to the C.O.D. List.

To confirm your status, email CODReporting@ocm.ny.gov. The Guide says you will be told "which supply tier licensee reported you as delinquent and how much they claim you owe them." A separate explainer walks through that check: How do I check if my dispensary is on the COD list? Source: OCM Retailer's Guide to the C.O.D. List; OCM Delinquent Payments FAQ, retailer question 2.

The path to clearance

Pay the invoice amount in full for the reported delivery date. The FAQ 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." Partial payment does not count. Source: OCM Delinquent Payments FAQ, supplier questions 9 and 11.
Late fees do not hold you on the list. A retailer who has paid the invoice amount "must be removed from the C.O.D. list even if they have not paid late fees or interest." Source: OCM Delinquent Payments FAQ, supplier question 12.
The supplier reports the payment. The FAQ says the supplier is "required to notify the Office within 1 business day of receiving payment in full." The supplier enters the transaction ID from its original report and the date it received payment. Source: OCM Delinquent Payments FAQ, supplier question 9; OCM C.O.D. List Supplier Instructions.
You come off at the next Wednesday update. If you have unpaid invoices with more than one supplier, each one has to report payment before you are removed. Source: OCM Delinquent Payments FAQ, retailer questions 3 and 4.

There is one route to credit before the Wednesday removal. A supplier may sell to you on credit if the reporting supplier confirms to the Office that it was paid, the new supplier asks the Office in writing, and you have no other outstanding credit. Source: OCM Delinquent Payments FAQ, retailer question 5.

If the report is wrong

Contact the reporting supplier first. If you cannot resolve it, section 124.2(f) lets the Office "receive statements from each of the parties to such dispute as to the facts and circumstances thereof and to determine whether or not a retail dispensary licensee is delinquent." The Retailer's Guide says disputes about "fact of payment, amount due or the quantity of product delivered" go in writing to CODReporting@ocm.ny.gov. You can appeal the Office's determination and request a hearing. Source: 9 NYCRR 124.2(f); OCM Retailer's Guide to the C.O.D. List; OCM Delinquent Payments FAQ, retailer questions 6 and 7.

The Office's guidance names the records that decide a dispute: "sales invoices, receipts, purchase orders, delivery receipts and any other records related to delinquent payments." What to keep is covered in What paperwork does a New York dispensary need for credit purchases? Source: OCM Delinquent Payments Guidance, rev. 1/1/2026.

UNVERIFIED The OCM seed-to-sale page carries a notice titled "Delinquent Payment Reporting Transitions to Metrc Effective 9/15/2026." That notice says the new Metrc functionality will "capture cannabis product credit transfers to retailers, delinquencies and COD list publication." Source: OCM seed-to-sale page.

The page did not spell out what changes for retailers after that date. Whether the supplier reporting tool, the notice-of-default upload, or the Wednesday schedule described here changes on September 15, 2026 could not be verified at the time of writing. Check the OCM page above before relying on any process detail after that date.

What this means for your store

Treat a notice of default as the alarm. It is the only warning the process gives you, and the report follows within about a week of the due date.
Check the notice against your own records. It must show the delivery date and the amount due. If either is wrong, say so to the supplier in writing before the report is filed.
Pay the reported invoice in full, for that delivery date, and get written confirmation of the day the supplier received it. The supplier's one-business-day duty starts on that day.
Ask the supplier to confirm it has reported your payment to the Office. Your removal depends on that report, not on your payment alone.
Plan for cash-only buying until the next Wednesday after the payment is reported. Every supplier on the list is bound by it.
Keep the invoice, the delivery receipt, the notice of default, and the proof of payment together. Those are the documents the Office reads in a dispute under 124.2(f).