Posted on 02/26/2007 5:28:33 PM PST by NormsRevenge
A state appeals court upheld California's $3 billion stem cell agency Monday against attacks by anti-abortion and tax advocates who claimed the agency's managers had conflicts of interest.
The 1st District Court of Appeal upheld a decision by a lower court judge who last year ruled in favor of the California Institute for Regenerative Medicine, which was created when Proposition 71 was passed by 59 percent of the electorate in 2004.
The California Family Bioethics Council argued that the stem cell agency is rife with conflicts of interest, saying officials from three university systems who sit on the board overseeing the agency could benefit because their various schools are applying for millions in research funds from the agency.
As written, Proposition 71 dictates that those officials must recuse themselves when the board is considering an application from their schools.
"Proposition 71 suffers from no constitutional or other legal infirmity," the court ruled, 3-0.
The appeals court was skeptical of claims that Proposition 71 violated the state's "single subject" law when putting initiatives on the ballot. Opponents said the proposition allows for more than just stem cell funding.
The appeals court, among other things, found that the ballot measure's general language appeared to ensure that all stem cell research funding wouldn't be hindered if it overlapped with other kinds of medical research.
The court also balked at arguments that the agency isn't under the "exclusive control and management" of the state.
The People's Advocate and National Tax Limitation Foundation argued that since the University of California officials on the agency's oversight board weren't appointed by elected officials - they were appointed by their chancellors - they aren't public officials and had no authority to spend state money. But the court noted that chancellors of those schools are appointed by the regents who are appointed by the governor.
Human embryonic stem cells are created in the first days after conception and give rise to all the organs and tissues in the human body. Scientists hope they can someday use stem cells to replace diseased tissue, but many social conservatives, including President Bush, oppose the work because human embryos are destroyed during research.
Proposition 71 came as a reaction to Bush administration's decision to cap federal funding for stem cell research at about $25 million annually, and impose strict research guidelines that scientists say limit advances.
Until the lawsuits are resolved, the agency can't borrow any money from Wall Street bond dealers. The state has loaned the agency $150 million, and philanthropic organizations have loaned it another $45 million to fund research.
The case is California Family Bioethics Council v. California Institute for Regenerative Medicine, A114195.
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