Posted on 03/01/2006 9:50:11 AM PST by NormsRevenge
HAYWARD — On the second day of the trial challenging the constitutionality of California's $3 billion stem cell institute, attorneys for the state defended the agency's track record through a key witness.
Robert Klein, chairman of the board overseeing the California Institute for Regenerative Medicine, took the stand for most of the day, answering questions from both sides about the structure and content of the agency.
Klein was the chief architect of Proposition 71, the ballot initiative approved by 59 percent of voters in November 2004 establishing the stem cell agency and authorizing the state to issue $300 million in bonds per year in 10 years to bankroll the controversial scientific research.
Plaintiffs attempted to argue in Alameda County Superior Court that Klein, his board and agency staff operate outside state control and therefore violate state laws.
"I'm extremely surprised by that concept," Klein told the court. "I am convinced we are under the authority and control of the state of California."
Klein was the only witness called by the plaintiffs — three taxpayer groups with ties to anti-abortion organizations that oppose embryonic stem cell research. The defense plans to call a total of four witnesses, including Klein, in this nonjury trial, which is expected to end Thursday.
The defense sought to show that top California officials — the governor, treasurer, controller and Legislative leadership — are actively involved in shaping and overseeing the new agency. Klein spoke at length about meetings with Gov. Arnold Schwarzenegger and Senate President Don Perata, D-Oakland.
"There were hours and hours of meetings in Senator Perata's office," Klein said.
Through Klein and a subsequent witness, Juan Fernandez, director of public finance at the California treasurer's office, the defense emphasized that the state treasurer is chairman of the agency's Finance Committee and oversees the issuance, investment and pricing of bonds.
"Has anyone outside of California exercised control over these funds?" Deputy Attorney General Tamar Pachter asked Klein.
"No," Klein replied.
Klein portrayed himself and the 29-member committee overseeing the stem cell agency, the Independent Citizens Oversight Committee, as bending over backward to accommodate the Legislature and top state officials.
The ICOC and state lawmakers, most notably Sen. Deborah Ortiz, D-Sacramento, chairwoman of the Senate Health Committee, have not always seen eye to eye. Ortiz has repeatedly threatened to lead a legislative effort to strengthen ethical rules and make sure California voters get financial returns on any cures developed in state-funded research.
David Llewellyn, attorney representing the California Family Bioethics Council, one of the plaintiffs, sought to portray members of the institute's scientific advisory and working groups as important decision-makers who operate outside of state rules because they live out of state.
Llewellyn pressed Klein on the financial promises made to voters during the Proposition 71 campaign.
"In fact there is no way of knowing how much money the state will get from this program, is there?" Llewellyn asked Klein.
After some wrangling, Klein acknowledged that despite estimates of millions of dollars in intellectual property royalties the state may reap, no one is sure what return taxpayers will get.
"No one can guarantee what this number will be," he said.
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