Facing criticism for a plan that would require pot entrepreneurs to hand over money and power to the city in exchange for permits to operate, three Oakland City Council members have revised their proposal — to require even more businesses to give the city money.

The new plan by Desley Brooks, Larry Reid and Noel Gallo would require all cannabis businesses, and anyone leasing space to a cannabis business, to give the city 25 percent of their profits and at least one seat on their board of directors. It would also restrict cannabis operating permits to people who have lived in Oakland for at least five years. The plan will go before the council’s Public Safety Committee on Tuesday.

Brooks, Reid and Gallo say the money generated from this arrangement would fund council district activities, loans for aspiring pot entrepreneurs who were hurt by the U.S. war on drugs, community beautification and three job-training programs that are run by politically connected people. One of them, a loose organization called Hispanic Engineers, Builders & Contractors of California, is headed by a childhood friend of Gallo’s.

“I want to bring revenue to East Oakland,” said Gallo, who generally opposes the legalization of marijuana but said he welcomes the money it could bring for job training and community services.

Responding to concerns from attorneys and policymakers who say the proposal would all but throttle Oakland’s marijuana industry, Gallo said that he and the other council members are open to debate.

“Does it have to be 25 percent of the profits? I think there could be a compromise,” he said.

But lawyers and industry experts who spoke to The Chronicle on Monday saw the council members’ proposal as a form of political overreach and an attempt to siphon profits from a burgeoning market.

“It’s politicians trying to make a buck on this,” said Dale Gieringer, who heads California’s chapter of the nonprofit lobbying group National Organization for the Reform of Marijuana Laws.

Long-standing Oakland cannabis attorney Robert Raich said Brooks, Reid and Gallo’s proposed rules violate several state laws, including a provision of the state’s Medical Marijuana Regulation and Safety Act that restricts the type of licenses a single entity can hold — if Oakland is reaping a quarter of the profits from numerous Oakland businesses, then the city would potentially hold many different licenses, Raich said.

Oakland could also run afoul of federal law, which deems it a felony for anyone, including a city, to participate in “cannabis activity,” regardless of what the state allows.

Yet Raich’s biggest concern is that Oakland will drive out hundreds of cannabis businesses, along with their tax dollars and the jobs they could create.

“The city is really harming itself,” Raich said. The councilmembers “are going to send cannabis businesses out in swarms, and that doesn’t help Oakland.”

Brooks, who did not return phone calls on Monday, said in a Facebook post Friday that the proposed rules would strengthen a cannabis equity program the council passed in May. The program reserves half the city’s permits for people who were jailed on marijuana convictions in Oakland over the past decade or have lived at least two years in a designated East Oakland police beat where marijuana arrests were highly concentrated in 2013.

Supporters of the equity program see it as a way to right the perceived wrongs of the U.S. war on drugs, which critics say disproportionately targeted African Americans and Latinos. Brooks has also said she wants to combat “systemic racism” in the cannabis sector, given that most of its visible leaders are white.

“Members of the cannabis community and others who thought they had a lockdown on the billions to be made in cannabis went ballistic,” Brooks wrote in the post of objections to the equity program, which many opponents say will choke off Oakland’s pot trade as Californians prepare to vote in November on whether to legalize marijuana.

The city’s Cannabis Regulatory Commission is pushing for a set of amendments to expand the equity permit program by including more police beats and granting equity permits to people with marijuana convictions that are more than 10 years old, and in cities beyond Oakland. The commission’s proposal will also go before the Public Safety Committee on Tuesday.

In her Facebook post, Brooks accused the commission of trying to dilute the equity program by opening it up to more people.

“Brooks is fighting a public relations battle with the word ‘equity,’” Raich said. “But she’s not actually doing anything to promote racial benefits; she’s doing what she can to destroy an industry in Oakland.”

Rachel Swan is a San Francisco Chronicle staff writer. Email: rswan@sfchronicle.com Twitter: @rachelswan