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The action leaves unsettled California's authority to issue bonds for the $3 billion to pay for the plan voters approved

The state Supreme Court rejected requests Wednesday by opponents of California's $3 billion stem cell program -- and by the committee that oversees the program -- to rule on the legality of the research initiative approved by voters in November.

The action leaves unsettled the state's authority to issue bonds that will pay for the research. While dismissing two suits that raised a variety of legal challenges to Proposition 71 and the agencies it created, the court said the suits could be refiled in Superior Court.

"As long as there's a challenge pending, there's a cloud over issuance of the bonds,'' said Deputy Attorney General Tamar Pachter, the state's lawyer.

The state may file its own lawsuit in Sacramento County Superior Court to validate the research bonds, said Nathan Barankin, spokesman for Attorney General Bill Lockyer. He said such a suit could be decided quickly and limited to financial issues, such as the state's ability to pay for the bonds....