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STEM CELL RESEARCH. FUNDING. BONDS.
Initiative Constitutional Amendment and Statute

THE QUESTION

Should California issue $3 billion in general obligation bonds to fund stem cell research and research facilities in California; establish a new state institute to issue grants, loans, and regulate such research; and establish a constitutional right to conduct stem cell research?

THE SITUATION

A stem cell is an “unspecialized” cell that has the potential to develop into different types of specialized cells in the body. Researchers work with both embryonic and adult stem cells.

California law permits stem cell research and the University of California conducts such research. The federal government provides funding for stem cell research but limits funds for research on embryonic stem cells.

THE PROPOSAL

Proposition 71 would authorize the sale of $3 billion in general obligation bonds to establish and finance the “California Institute for Regenerative Medicine” to issue grants and loans for stem cell research and research facilities, and to regulate such funded research. Consistent with current statute, this measure would establish a right to conduct stem cell research and would prohibit the Institute’s funding of human reproductive cloning research. An Independent Citizen’s Oversight Committee would govern the Institute.

The measure would allocate bonds subject to an annual limit of $350 million. Bonds would be repaid through the General Fund.

FISCAL EFFECT

After the initial five years when no General Fund payments on the bonds are permitted, a 30-year repayment schedule would result in a total cost of about $6 billion, or an average of $200 million per year in payments from the General Fund. Payment of administrative costs with bond funds is limited, and repayments of loans must be used to make new loans. Revenue potential for the General Fund and the UC is unknown. Significant research success could stimulate undeterminable general statewide economic activity.

WHAT A YES OR NO VOTE MEANS

A YES vote means that $3 billion in general obligation bonds could be sold to fund stem cell research and research facilities in California and that, consistent with current statute, a constitutional right to conduct stem cell research would be established.

A NO vote means that $3 billion in general obligation bonds could not be sold for these purposes; conducting stem cell research would not be a constitutional right.

SUPPORTERS SAY

• Stem cell research could lead to treatments and cures for many diseases and injuries, cutting California’s health care costs.
• Proposition 71 prohibits funding for human cloning, reinforcing existing state law.
• Proposition 71 will generate thousands of new jobs and millions of dollars in new state revenues.

OPPONENTS SAY

• California voters have already approved billions of dollars in bond debt this year. Additional borrowing now is not responsible.
• Big pharmaceutical companies and venture capitalists are using taxpayers to fund the very narrow field of stem cell research.
• Since Proposition 71 is a constitutional amendment, neither the governor nor the Legislature can control how this money is spent, even if stem cell research is not useful.

For more information:

Supporters: Californians for Stem Cell Research and Cures, (800) 931-CURE, www.curesforcalifornia.com

Opponents: Doctors, Patients and Taxpayers for Fiscal Responsibility, www.noon71.us

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