California

HISTORICALLY AN OPEN haven for technological innovations and scientific inquiry, with a university system that strongly supports research and a biomédical industry employing over 200,000 people, California has recently become—and is determined to remain—a leader in stem cell research. On November 2, 2004, three years after the Bush administration limited federal funding of human embryonic stem cell research to research dealing with stem cell lines already created as of August 9, 2001, the state of California passed Proposition 71, essentially electing to have the state assume a level of involvement in stem cell research that would ordinarily only be found at the federal level. In that sense, the vote is important not only to embryonic human stem cell research—it is the largest source of American funding to the field, either public or private—but to research funding in general and to the balance of power and responsibility between the state and federal governments.

Once passed (59 percent to 41 percent), Proposition 71, which was also known as the California Stem Cell Research and Cures Initiative, was codified as California Constitution Article XXXV. It established stem cell research as a state constitutional right and authorized the sale of general obligation bonds over a 10—year period to allocate $3 billion to stem cell research, with priority given to human embryonic stem cell research. Unlike Bush's August 9, 2001, executive order, it did not limit its funding to research using existing stem cell lines, but it did ban the funding of human cloning.

General obligation bonds are a secure, low—interest, tax—exempt municipal bond issued at the state, local, or county level to raise money for a government project—typically the building of a bridge or other large—scale construction project that cannot be funded gradually by tax revenue. The cost to the state over the 30 years in which the bonds will be paid off is estimated at $6 billion. To get a sense of the amount involved, Proposition 71 called for $300 million a year to be spent, favoring human embryonic stem cell research, which is 12 times what the federal government spent in the field in 2003. Universities and other institutions began exploring the creation of new dedicated laboratories, and researchers in other states sought to relocate. The University of California, San Francisco, made plans for a $109 million stem cell research facility, and its director of stem cell biology Dr. Arnold Krigstein actively [Page 54]recruited scientists to come work with him. Immediately, comparisons were drawn to the gold rush as well as to the dotcom boom (after all, the promise of human embryonic stem cell research remains largely potential).