Member Blog: My Journey Through The Intersection of the LGBTQ Community and Cannabis Movement
By Erich Pearson, SPARC
NCIA Board and Founding Member
Reflecting on the decades-long fight to end prohibition of marijuana, one person comes to mind this month as we look at the similar and interconnected decades-long Gay Pride movement and what it means for the LGBTQ community today. One activist largely credited for legalizing medical cannabis in California is the original “cannabis influencer” Dennis Peron. We have much to be grateful for as we remember his legacy advocating for AIDS patients in California to have access to medical cannabis.
As for my role in both of these these important causes, I arrived in San Francisco in 2000 after graduating college in Indiana. I was happy to find San Francisco to be not only accepting of me as a gay man, but also accepting of me as someone interested in the cannabis movement. In the 1990s, there were a handful of medical cannabis dispensaries operating, un-permitted and un-regulated. It wasn’t until 2006 that Americans For Safe Access (ASA), Drug Policy Alliance (DPA), and Marijuana Policy Project (MPP) along with a handful of local advocates led the charge to regulate dispensaries.
A few of the most vocal advocates were veterans from the political days of Dennis Peron. Dennis was not involved in the regulatory process of 2006. It was widely known that Dennis didn’t like regulations (he repeated this during the Prop 64 campaign years later). Dennis thought cannabis should be grown and sold freely, outside of an alcohol-type regulatory environment. He was right, but unrealistic – hence his waning interest in the politics of it.
Dennis did have a few friends who wanted to see cannabis regulated in San Francisco, and one was Wayne Justmann, a gay man that used to work the door at Dennis’ cannabis club at 1444 Market Street. Wayne is a friend of mine today, and we worked closely together to advocate for a dispensary program that respected the existing operators, despite their “inappropriate” locations in many cases. We ultimately won this battle, as San Francisco has a healthy respect for social pioneers.
San Francisco was also the first city to regulate on-site consumption. This was allowed in order to provide AIDS patients a safe place to medicate, outside of government housing. This has proven to be a successful program, with little public resistance even today as we permit more of these lounges, primarily designed for adult-use consumption.
I started a free compassion program in San Francisco in the early 2000’s at Maitri AIDS Hospice. We still deliver twice a month to patients there. This has been an incredibly successful program and a very rewarding experience for myself and the staff who carry it out.
Today, I don’t see a lot of synergies anymore between gay progress and cannabis progress despite its intertwined history, but we at SPARC honor that history with a t-shirt claiming victory: “Legalized Gay Pot.” Of course, the fight for fair treatment and equality for both cannabis and LGBTQ right is far from over, but in San Francisco, I’d say we’ve come a long way on both fronts. And as cannabis legalization sweep through other states across the country, we can see studies that show gay, lesbian and bisexual people being the highest level of consumers among other select demographics, showing that our communities continue to overlap.
In looking back on all of this history and progress, I am thankful for all of the advocates who put themselves forward to fight for cannabis AND LGBTQ rights – we wouldn’t be here without their hard work, dedication, and selflessness. I now look forward to a future where everyone, in every state, can access the cannabis plant and be treated with respect and fairness.
Photo By CannabisCamera.com
Erich Pearson is a recognized leader in the cannabis industry – a long-time advocate, legislative consultant, dispensary operator, cultivation expert, and NCIA board member.
A proponent of medical cannabis regulation, cultivation, and best practices since 2000, Erich served on the San Francisco District Attorney’s Medical Marijuana Advisory Group and consults on state and local medical cannabis policy and legislation.
Erich was instrumental in the passage of both San Francisco’s Medical Cannabis Dispensary Act and the law enforcement “lowest priority” resolution of the San Francisco Board of Supervisors. As a result of Erich’s work he was appointed in 2007 by Supervisor David Campos to sit on San Francisco’s Medical Cannabis Working Group.
In 2010 Erich launched SPARC, a nonprofit medical cannabis dispensary providing safe, consistent and affordable medical cannabis to patients in San Francisco. SPARC provides high quality, lab-tested cannabis to qualified patients, and collaborates with local hospices, residential care facilities, and dispensaries to successfully supply medical marijuana at no cost to seriously ill patients.
How does SPARC do it? By growing cannabis more efficiently. Erich’s expertise is constructing and managing large indoor cultivation facilities. With a robust Research & Development team, Erich is meticulously focused on developing the optimal environmental recipe for high-yield cultivations using unique systems of lighting, ventilation and design.
SPARC is a Founding & Supporting Member of NCIA. Erich holds a BS in Construction and Project Management from Purdue University.
NCIA’s 2018 Post-Election Webinar
Watch this webinar recorded on Thursday, November 8, for NCIA’s recap of the midterm elections and what they mean for cannabis policy reform nationally.
Hear from representatives of the statewide cannabis campaigns in Michigan, Missouri, North Dakota, and Utah to find out what went right, what went wrong, and what happens next for regulators, businesses, and consumers. NCIA and the Marijuana Policy Project discussed the next states to watch and key federal legislation to follow in 2019.
Member Spotlight: The Arcview Group
The Arcview Group, with CEO Troy Dayton
Member Since:
December 2010
Industry Sector:
Professional Services and Consulting, Investment and Asset Management
Tell me a bit about your background and why you launched your company?
Steve DeAngelo and I started Arcview in 2010 because we believed that business would ultimately become the single biggest factor in leading the end of marijuana prohibition — but there was a lack of leadership, professionalism, and scaling knowledge in the sector. We didn’t have all the answers, but we both knew a lot of the right people, so we surmised that if we structured a way for these parties to come together in a curated community around facilitating investment in the sector, we could ignite the power of free enterprise and aim its tremendous power towards political progress and the development of a new kind of industry.
I got my start in cannabis when I was a freshman in college at American University where I was one of the Marijuana Policy Project’s first volunteers in 1995, the year it was founded. I went on to intern for the Drug Reform Coordination Network at the dawn of the internet age where I helped start a project called U-net, which was a list-serve of college drug reform activists. Obvious thing to do now, but then it was revolutionary because it was the first time college activists could find each other and communicate easily. We rallied hundreds of activists behind a fellow student who was being kicked out of college for starting a marijuana policy chapter. It wasn’t long before we realized that it was time to start a more robust student drug policy organization. That began Students For Sensible Drug Policy which is now on hundreds of campuses nationwide and is a major force for political change.
Over the years, I helped start a digital video media company that was a cross between Youtube and Facebook. We raised millions of dollars but ultimately went “dot bust” because we were about 7 years too early with exactly the right idea. Then a few of us from that endeavor started a renewable energy company called Renewable Choice Energy, which was recently acquired by Schneider Energy 15 years later. I spent 3 years working with religious leaders and religious denominations helping them advocate for various drug policy reforms where I could. I spent two years as the Director of Development for the Multidisciplinary Association for Psychedelic Studies (MAPS). Just before I started Arcview I was the lead fundraiser for the Marijuana Policy Project.
I always felt like I had to choose between being part of the next business boom or fighting for what I believed in and remaining poor. I never in a million years believed that my work to end marijuana prohibition would have led to the next business boom. It didn’t occur to me until 2009.
What unique value does your company offer to the cannabis industry?
Arcview is the largest source of investment deal flow in the sector, and the publishers of the most trusted and best-selling market information. Our 600+ high net worth investor members have placed north of $150 million into 160+ cannabis related companies. We are the launch pad for companies seeking capital and mentorship, and for investors figuring out their investment thesis and developing relationships with the people they will need to make the most of this rare economic opportunity. As more investment conferences and pitch contests develop for the sector, and as more traditional investment gatherings start looking at cannabis, I think our biggest differentiator is our incredibly generous community. I’m astounded everyday buy the blood, sweat, and tears that our members put in to help each other and help these companies succeed. Unlike most investment conferences where almost everyone is there pretty much for their own self interest, at Arcview we’ve created a unique environment where people are also there for the benefit of the community, and for the love of the game. And we have a ton of fun.
Cannabis companies have a unique responsibility to shape this growing industry to be socially responsible and advocate for it to be treated fairly. How does your company help work toward that goal for the greater good of the cannabis industry?
At every event we have a non-profit working to change the laws give a pitch to the members, and then I ask people to make commitments on the spot. We’ve raised more than $3 million for the cause during these efforts. And when people make their commitments they often say a few words about why. We make it clear at Arcview that if you are investing in this industry, you also need to be donating to the cause. It’s not just good for the soul, but it also make great business sense.
We are also a key place for organizations like NCIA and others that are advocating for good business practices and diversity in the industry. Steve DeAngelo and I both serve on the board of NCIA, and I serve on the board of the Marijuana Policy Project.
I also think that our unique community culture at Arcview helps create a new kind of industry, where people hug instead of shake hands, where they look into each others eyes instead of each others pockets, and where people get to bring their whole selves to their business and not just this plastic old school version of “professionalism.”
What kind of challenges do you face in the industry and what solutions would you like to see?
The very rapid reduction in the wholesale price of cannabis is both a huge opportunity and a huge challenge depending on where you sit and how you look at it. It’s going to be great for consumers, agricultural product creators, landlords and for the legal markets competing with the illicit markets. It will not be kind to small boutique growers and to the amazingly rich culture that has been built around small scale cultivation. There are some great companies helping people transition and coming up with cooperative models that will help boutique farmers compete. There are also efforts to brand those growers and maintain consumer support for more expensive cannabis where they feel connected to the cultivator.
Another big challenge we face is severely limited licensing that only benefits a few. This is particularly a problem in the Northeast, but also in some countries as legalization spreads. Limiting licenses is not a terrible idea if it’s within reason, but there are a few examples where it’s way too lopsided into just a few operators controlling a market. Many people think this is temporary, and that after federal prohibition ends these regulatory structures will loosen up. I’m not as optimistic. When only a very few benefit hugely, they are incentivized to hold on to that structure for dear life, particularly if it is helping to uphold unnaturally high pricing. We could see the federal government leave it up to the states and those states maintain those oligopolies. In fact, I think that is most likely.
But the biggest challenge we face is that people think we have already won and so they are not donating to change laws and they are forgetting that they are right now committing actual civil disobedience and are subject to arrest and imprisonment. Wake UP! If you are already “woke” on this point, then please go “woke” some other people. An industry with a 27% Compound Annual Growth Rate and a ton of enemies needs to be building a powerful and well-funded lobbying effort on the order of the gun, tobacco, alcohol, gaming, and pharmaceutical industries. But we aren’t even close. The fact that we have made so much progress with the tiniest fraction of those industries lobbying budgets is testament to just how right we are and what amazing advocates we have. But we are in the big leagues now and we need to swing like we are in the big leagues.
If you are not donating at least a percent or two of your revenue or amount invested, then you are riding coat tails and you are the reason we have not made additional progress. As the Beastie Boys said so eloquently, “You’ve gotta fight for your right to paaarrrrtaay!”
Why did you join NCIA? What’s the best part about being a member?
I was a founding board member of the NCIA because I believe we need a strong lobby advocating for our interests. I also wanted to make sure that we set the tone that this is not just an industry, but a political movement with social justice aims. NCIA is the perfect expression of those ideals. My favorite part of being a member is being on the board and getting to marvel at the amazing, quirky, fun, and incredibly accomplished women and men that lead this world-changing industry. It’s a true honor to serve along side them as we create jobs, wealth, tax money, health, and freedom.
The growth of the medical marijuana movement presents a unique opportunity for advocacy groups to work hand-in-hand with the business community in order to bring about positive social change. Historically, advocates for important social reforms like the 40-hour week and safer working conditions had an understandably anti-business orientation. But when we’re talking about providing greater access to medical marijuana, such an attitude is less than helpful. In fact, it’s counter-productive. I believe if that fact were merely recognized and accepted by both medical marijuana activists and the business community, we would be much closer to establishing national acceptance than we are today.
Changing state law to allow access to medical marijuana always starts with advocacy. Most likely groups like NORML will have been agitating for years, and individual patients’ rights groups will have formed around specific issues like access for children with epilepsy or veterans with PTSD. Eventually the Marijuana Policy Project, the largest organization working solely on marijuana policy reform, will start backing the local movements by injecting capital and other resources as part of an organized push for either a statewide initiative or legislative action. Although that is an oversimplification, it paints a picture of the landscape.
Usually, once a state law has been enacted to allow for access, the advocates quiet down and business rules the day. Licensees, who are above all businesspeople thrilled at this newfound opportunity, plow full steam ahead. They raise money, build infrastructure, create jobs, and serve the community.
Although they have common interests, the link between businesspeople and advocacy groups is never formally cemented and no long-term commitments are ever made. It seems like every other big (or growing) industry understands the need for advocacy at the local and federal level. This is true across the board, not only for industries like ours which reside in a controversial space. This is reflected in the effectiveness of groups like the National Restaurant Association or the American Medical Association.
Our industry has failed to create an effective symbiosis and I lay the blame on both groups. I will start with the business element; since I am part of that contingency, I am more comfortable calling out my closest colleagues. Far too many of us fail to acknowledge that, although it may be legal to run a cannabis business in your state today, it wasn’t yesterday and it may not be tomorrow. State rules can change, and even in instances where access expands, that doesn’t mean those in the business will have a seat at the table. California is the greatest example of this. Those currently operating dispensaries in California are doing so without state licensure (as none exists). The fact that millions of dollars from the current industry participants are not pouring into advocacy and lobbying efforts to ensure California eventually does standardize licensing, and when they do, to maintain a window of opportunity for those previously operating, is mind-boggling.
All you have to do is look at the online gaming fiasco to see what could happen. Online poker sites were previously licensed offshore but doing business in the United States. When the U.S. finally accepted the reality of online gambling and allowed licensing, one of the first regulations was to ban participation by companies who had previously operated without a license. The result was the domestic closure of all the major online poker sites and a huge advertisement at the Las Vegas airport promoting real money online poker now available at WSOP.com (owned by Harrah’s). Why did this happen? Because the “big business” folks understood the link between advocacy/lobbying and business, and at the end of the day the Las Vegas casino corporations were the primary supporters of the new landscape, and of course they helped influence it being set up in their favor.
In addition to the possibility of being shut out of their current marketplaces, the cannabis business community must understand that success in their state is partially reliant on the growth of the overall marketplace and success in other states. The best thing for a licensee in Illinois is to have Missouri legalize medical cannabis. The ideal situation would be for the operators in Illinois to somehow leverage their experience in that state to access licenses in their neighboring state. The only way this has a chance of happening is for the advocacy side to be successful. For that to occur, they need money and a commitment of resources.
2013 Lobby Days, National Cannabis Industry Association, with Rep. Earl Blumenauer (D-OR)
To be fair, the advocacy groups have not done any better in forging lasting alliances. In fact, my biggest gripe with this community is their widespread distancing of their agenda from capitalism. Most, if not all, of the prominent drivers of social change on this issue have some part of their platform addressing the fact that this is about patients first. A downward spiral then ensues where, because it’s patients first, it must mean business second… or third or last or somehow altogether evil. Without successful businesses, patients will have nowhere to access the medicine that they fought so hard to get. Without successful businesses, there is no money to be poured into advocacy to open access in new states and hopefully once and for all, federally, which is the core mission of groups like the National Cannabis Industry Association (NCIA). There is absolutely no arguing this point. If that is the case, why is business so evil? It would be like a group that is fighting for family rights having part of their platform be anti-sex. Without sex you make no babies, and without successful business, patients have no cannabis.
Advocates and cannabis business owners have considerable common ground, but until they are willing to combine their efforts and wage a unified campaign, it’s going to continue to be a much harder fight than it should be.
MedMen is a medical marijuana licensing and management company with years of experience helping clients enter the field of medical marijuana, and has been a member of NCIA since August 2013.
Without a strong political machine driving legal reforms across the country, there would be no cannabis industry.
If you are a member of NCIA and would like to participate in our Annual Member Lobby Days, please visit our event page with details about the NCIA Policy Symposium and Member Lobby Days in Washington, D.C. from April 28-30, 2015.
A one-day conference focused on the latest efforts to reform state and federal marijuana laws will be held alongside NCIA’s Lobby Days, and will feature panel discussions as well as an interactive workshop teaching you how to lobby for cannabis reform. Please join us and pre-register today!
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I started a free compassion program in San Francisco in the early 2000’s at Maitri AIDS Hospice. We still deliver twice a month to patients there. This has been an incredibly successful program and a very rewarding experience for myself and the staff who carry it out.
