Bureau of Cannabis Control Emergency Regulations CODE OF REGULATIONS TITLE 16 DIVISION
§ 5004. Financial Interest in a Commercial Cannabis Business
(a) A financial interest means an agreement to receive a portion of the profits of a commercial
cannabis business, an investment into a commercial cannabis business, a loan provided to a
commercial cannabis business, or any other equity interest in a commercial cannabis business
except as provided in subsection (c). For the purpose of this section, an interest in a diversified
mutual fund, blind trust or similar instrument is not a financial interest.
(b) The license application shall include the name, birthdate, and government-issued
identification type and number for all individuals who have a financial interest in a commercial
cannabis business but are not owners as defined in Business and Professions Code section
26001(al). These individuals shall not be required to submit the information required of owners
under section 5002(c)(20).
(c) Notwithstanding subsection (b), the following persons are not required to be listed on an
application for licensure under section 5002(c)(19):
(1) A bank or financial institution whose interest constitutes a loan;
(2) Persons whose only financial interest in the commercial cannabis business is through an
interest in a diversified mutual fund, blind trust, or similar instrument;
(3) Persons whose only financial interest is a security interest, lien, or encumbrance on property
that will be used by the commercial cannabis business; and
(4) Persons who hold a share of stock that is less than 5 percent of the total shares in a publicly
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and
26051.5, Business and Professions Code.