S.F. No. 5405 Summary

• Establishes definitions for cannabis business ownership including "true party of interest" that encompasses all owners, managers, and those with control or profit-sharing rights in cannabis businesses.

• Limits married couples to ownership of no more than one cannabis microbusiness, one mezzobusiness, five retailer businesses, three cultivator businesses, or three manufacturer businesses.

• Requires cannabis businesses to disclose the source of all invested money, including funds from "financiers" (non-institutional lenders), before investing in the business, with exceptions for reinvested revenues and previously approved loans.

• Prohibits financiers from receiving ownership interests, control, or profit shares unless they receive office approval and qualify as a true party of interest on the license.

• Mandates the office conduct financial and criminal background investigations on all financiers providing loans or gifts to cannabis businesses.