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Dana Cody, executive director, Life Legal Defense Foundation (LLDF)

a new anti-Proposition 71 lawsuit claims conflict of interest in ICOC grant to UC

According to a notice published today on the web site of the Life Legal Defense Foundation:

"On Monday, June 26, 2006, attorneys for Life Legal Defense Foundation filed suit against Steve Westly, Controller of the State of California, and Robert C. Dynes, President of the University of California, on behalf of the National Tax Limitation Foundation. Joining the suit as a plaintiff is the California Family Bioethics Council, represented by Attorney David Llewellyn of Llewellyn Spann. NTLF and CFBC are seeking declaratory and injunctive relief in a taxpayer action related to the funding of training grants approved by the Independent Citizen's Oversight Committee on September 9, 2005. The ICOC is the 29 member Governing Board of the California Institute for Regenerative Medicine, 9 members of whom are affiliated with the University of California. The taxpayer action alleges conflicts of interest due to the fact that ICOC board members voted to approve training grants totaling approximately $38.9 million to 16 institutions, eight of whom were constituent institutions or entities of the University of California.

"On April 4, 2006, The California Stem Cell Research and Cures Finance Committee, chaired by State Treasurer Phil Angelides, approved the sale of $14 million in bond anticipation notes to fund ICOC training grants.

"Defendant Westly then approved the issuance of warrants for release of $12.1 million in funding pursuant to the ICOC grant awards. Defendant Dynes received approximately $6.7 million of the funds released on behalf of the University of California.

"This action was brought because the trial court, in an action brought in the Alameda County Superior Court which went to trial earlier this year, was unwilling to consider particular instances of alleged illegitimate actions by the ICOC and the University of California. In order to protect taxpayers' interests, NTLF and CFBC filed this action; the State Attorney General has repeatedly stated that state control is exercised through the Controller's office, which would refuse to issue any warrants that did not comply with the law. This action will expose the amount of control actually being exercised over the ICOC.

"A copy of the complaint filed in the Sacramento Superior Court is available by clicking here."

 

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