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Stem Cell Research Update: Legal Woes, New Legislation Within States

April 24, 2006

As competition for leadership in stem cell research heats up across the nation, legal battles and the introduction of new legislation are becoming commonplace among many states. Following is a round-up of recent news on stem cell research legalities and legislation in several states.

Legal Challenges in California, Illinois

Last Friday, an Alameda County, Calif., Superior Court judge ruled the Stem Cell Research and Cures Act, or Proposition 71, to be constitutional in its entirety. The California Institute for Regenerative Medicine (CIRM) decided to move forward with its first round of grants earlier this month, despite the legal challenges. CIRM announced 16 awards totaling $12.1 million to train the next generation of stem cell researchers using funding from the sale of $14 million in bond anticipation notes. According to a New York Times article, the challenge tied up the $3 billion in bonds approved by voters in 2004 (see the June 7, 2004 issue of the Digest), and officials instead sold $14 million in bond anticipation notes.

The judge's ruling did not immediately free up the bonds, however. The Chronicle of Higher Education reports that bond sales cannot take place unless the judge's ruling still stands after all appeals are exhausted, a point that could be reached sometime next year. CIRM currently is processing another $32 million of commitments with foundations to "lift the institute beyond the reach of the current litigation and to begin an additional round of funding for scientific and medical research."

An Illinois Circuit Court judge recently ruled that Gov. Rod Blagojevich was within his rights to designate $10 million in grants toward stem cell research in the fiscal year 2007 budget, reports the Chicago Daily Herald. According to the article, the governor inserted $10 million in the public health department's budget toward "scientific research" and once the legislature passed the budget, he issued an executive order directing that money be spent on stem cell research. A lawsuit was then filed challenging the constitutionality of the governor's designation of money toward such a vague category. Following the judge's ruling, the Department of Public Health announced it will grant awards to several institutions within the coming weeks.

Maryland, Georgia Approve New Legislation

Gov. Robert Erlich signed into law the Maryland Stem Cell Research Act of 2006, authorizing $15 million for research in FY07 (see the April 17 issue of the Digest). The legislature cut $5 million from the governor's recommendation of $20 million and eliminated funding to construct a research center at the University of Maryland-Baltimore.

In Georgia, Gov. Sonny Perdue signed an executive order creating the Governor's Commission for Newborn Umbilical Cord Blood Research and Medical Treatment. The commission will establish a network of postnatal tissue and fluid banks in partnership with universities, hospitals, nonprofit organizations and private firms for collecting and storing postnatal tissue and fluid. One of the primary duties of the commission is to encourage cord blood stem cell donation and promote awareness of options available to expectant mothers, according to the governor's office.

The governor's order accomplishes many of the same objectives as SB 596, introduced earlier in the legislative session by Sen. David Shafer (R-Duluth). The first version of the bill included a ban on embryonic stem cell research and failed to draw universal approval. The final version dropped any mention of embryonic stem cells. A rival bill also was introduced by Sen. David Adelman (D-Atlanta) that encouraged all forms of stem cell research, but failed to draw support as well. The governor's executive order does not assign any money to the commission.

California