Important note: Information in this article was accurate in 2004. The state of the art may have changed since the publication date.

Reuters NewMedia - December 13, 2004
Leonard Anderson

Schwarzenegger, a Republican, nominated Robert Klein, a real estate developer, for chairman and Edward Penhoet, co-founder and former chief executive officer of Chiron Corp., a pioneer of California's biotechnology industry, for vice chairman. Both are Democrats.

California Controller Steve Westly also selected the pair for the two top seats on the Independent Citizens Oversight Committee, a spokesman said.

Klein, who contributed about $2 million to the stem cell initiative and campaigned hard for its passage, is regarded as the leading contender for the post.

But some members of the oversight panel have called for a number of candidates to counter criticism that the public does not have enough say in the scientific program that will spend $300 million a year in state bond money for 10 years.

"I think there have to be choices. There has been no serious discussion of any other persons," said AIDS activist Jeff Sheehy, a committee appointee and spokesman for the UC-San Francisco AIDS Research Institute.

Klein was not available Monday, a spokeswoman said, but he issued a statement saying he pledged "to serve the interests of California citizens, its patients and taxpayers. ... I am committed to transparency in process, public oversight and accountability and the highest ethical and medical standards possible."

If elected chairman, Klein said he would "not hold any biomedical stock or investment interest during the term of office."

The committee, which will guide the work of the new California Institute for Regenerative Medicine, holds its first meeting on Friday in San Francisco.

Various state officials are appointing 27 members; the governor, lieutenant governor, controller and treasurer are nominating candidates for the two top positions, which will be voted on by the other committee members.

Some state lawmakers want to have more of a say in how the program is run and to make sure California reaps a return on the research.

Critics of the initiative have complained the research will benefit private biomedical companies and venture capitalists at the public's expense.

Democratic Sen. Deborah Ortiz, who supported the initiative and chairs the Senate Health Committee, has introduced a bill to protect the state's investment and bar conflicts of interest among private officials who will manage the research money.

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