California Institute for Regenerative Medicine's conflict of interest proposals remain "inadequate"

Center for Genetics and Society says working groups must disclose personal financial interests

Public interest critics of the California Institute for Regenerative Medicine (CIRM) today said the proposed set of what CIRM calls "enhanced" conflict of interest standards represent progress, but remain inadequate. The CIRM's governing board will consider these proposed policies at its July 12 meeting in Irvine.

"We recognize the positive progress made by the board on governance issues," said Marcy Darnovsky, associate executive director of the Center for Genetics and Society. "But these proposals still fall short of basic democratic principles of good and open governance. Both the conflict of interest and open meetings policies up for consideration by the Institute's board remain inadequate."

CIRM, which is to distribute $3 billion to fund stem cell research, remains mired in controversy. Proposition 71, which established the Institute, exempted it from many of California's key open meetings and conflict of interest laws.

The proposed policies are part of a set of compromises worked out among CIRM leadership and several state legislators. Legislative action on CIRM has been spearheaded by Sen. Deborah Ortiz, a key backer of Proposition 71 who began sharply criticizing CIRM immediately after the election and introduced a package of reforms to address some of the measure's flaws. After negotiations in June, Sen. Ortiz offered to table a proposed constitutional amendment if CIRM's board adopts strong policies.

The proposed policies would allow members of CIRM's "working groups" to report their financial interests only to CIRM, rather than disclosing them publicly. The working groups are key bodies that will review grant requests and set research standards, among other functions. Research by the Sacramento Bee reported this past weekend indicate that some members of the Grant Funding Working Group have personal financial interests in companies that conduct, or are financially connected to, stem cell research.

"Californians deserve transparent and accountable governance," said Jesse Reynolds, project director for biotechnology accountability at the Center. "The personal financial interests of those who make recommendations and decisions about the fate of billions of public dollars should be publicly disclosed. This week's revelations by the Sacramento Bee only make that more clear."

The proposed policies also address the working groups' rules for open meetings and public records. Terry Francke of Californians Aware, the leading advocacy organization for open state governance, said in a July 11 letter to CIRM's board, "Proposition 71 got off on the wrong foot by designing secrecy for the process in which its policies and choices are incubated. While the prospect of a corrective constitutional amendment has forced certain `enhancements,' too many are riddled with ambiguity at best, and at worst, unjustified in terms of Proposition 59's requirement that interests to be protected and the need for the protection be identified whenever rules are made that limit access to public meetings or records."

Proposition 59, "Public Records, Open Meetings," was passed by more than 83% of California voters in November 2004. It established a constitutional right of access to government meetings and records.

Public interest critics, state legislators, and other commentators have also raised questions about the affordability of any eventual treatments, protection of research subjects and women who may provide eggs for research, financial returns on the large public investment, effective controls to prevent misuse of cloned embryos, operational irregularities, and other matters.

"We are encouraged that California's elected officials seem inclined to keep a close eye on CIRM," said Darnovsky. "We hope that Sen. Ortiz and others will maintain pressure on the institute. After all, this is a public agency funded by the people of California."

Contact: 
Marcy Darnovsky
510-625-0819 x305