Op-Ed

LOS ANGELES — California has transformed into a major player in stem cell research, but the taxpayer-funded institute responsible has “significant deficiencies” in how research dollars are distributed, experts said Thursday.

A report by the Institute of Medicine found too many members on the board of the California Institute for Regenerative Medicine represented schools that won funding and recommended a restructuring to avoid the appearance of conflict of interest.

California voters in 2004 approved Proposition 71, a state ballot initiative that created CIRM, at a time when there were federal restrictions on human embryonic stem cell research and such work was opposed by some on religious and moral grounds because embryos have to be destroyed to harvest the cells.

The agency was given broad power to distribute $3 billion in bond proceeds to promising research. So far, it has distributed more than $1 billion to some five dozen universities that went mostly toward investments in new buildings and basic research.

The team of 13 experts that reviewed the stem-cell agency’s operations did not judge the merits of individual studies because...