Sides rest in stem cell case

The trial challenging California's landmark stem cell agency concluded without fanfare Thursday in an Alameda County courtroom after less than four days of testimony.

That doesn't mean that a judge's ruling, expected in about a month, will be the definitive decision on the fate of the agency, however, as both sides plan to appeal if they lose.

The California Institute for Regenerative Medicine, created when 59 percent of voters statewide passed Proposition 71 in November 2004, is under fire from three taxpayer groups alleging that the novel agency operates outside state control and is therefore unconstitutional.

Alameda County Superior Court Judge Bonnie Lewman Sabraw heard testimony in the nonjury trial in her Hayward courtroom, which focused on the agency's structure.

Lawyers for the plaintiffs, who have ties to antiabortion groups that oppose embryonic stem cell research on moral grounds, painted the agency and the 29-member board overseeing it as being beholden to no one and rife with conflicts of interest.

David Llewellyn, attorney for the California Family Bioethics Council, focused his case on scientific working groups that consider which grant applications the agency will fund. Some members of these groups work and live outside of California.

Llewellyn argued that the working groups function outside the bounds of state law and have unresolved conflicts of interest.

Llewellyn called only one witness during the trial, Robert Klein, the chairman of the committee overseeing the institute and principal author of Proposi-tion 71.

Charles Taylor, representing the National Tax Limitation Foundation, another plaintiff, called no witnesses and said he would rely on submitted written documents to make his case. The plaintiffs requested tens of thousands of pages of state documents and deposed at least 25 witnesses.

The defense, led by Deputy Attorney General Tamar Pachter, called four witnesses: Klein, Zach Hall, president of the stem cell agency, and two high-level state financial officials who work closely with the agency.

In the state's defense, Pachter highlighted the numerous ties the agency has with the governor's office, controller, treasurer and Legislature. The agency's policies regarding conflicts of interest and ethical standards, crafted in consultation with the Legislature, also were emphasized through defense testimony.

Klein said in a statement that he felt the defense made a strong case.

"The evidence demonstrated that this new state agency is operating within the letter of the law," he said in the statement.

The state has been unable to issue any of the $3 billion in bonds allocated to the stem cell institute under Proposition 71 because of the legal challenge. The agency is relying on donations to keep basic operations going.

A conclusion to the case, with appeals, is not expected for about 15 months.

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