Stem-cell board too close to industry, critics worry

California's new stem-cell institute is poised to begin spending $3 billion in public money for research, but watchdogs are worried about whether the board can distribute the money free of industry influence.

Critics say some of those on the institute's governing board have ties or even personal investments in business or other organizations that could benefit from the money. In addition, the institute's newly approved conflict-of-interest rules are inconsistent and largely self-policing, according to the critics. For instance, board members applied stricter rules to the institute's staff than themselves.

As a result, a panel of state lawmakers today is expected to vote on a proposal that would toughen the institute's conflict-of-interest provisions. It would require the institute's board, employees and science advisers to divest their holdings in firms conducting stem-cell or other biomedical work.

Their bill, SCA 13, backed by a state Senate committee last month, is based on similar rules established by the National Institutes of Health. But the NIH policies themselves are under fire as too draconian and may be softened considerably.

The fact is, there is little...