A1891

An Act authorizing the creation of a debt of the State of New Jersey by the issuance of bonds of the State in the aggregate principal amount of $230 million for the purpose of financing the costs of providing stem cell research grants to universities, academic medical institutions and other entities in the State conducting scientific and medical research; providing the ways and means to pay and discharge the principal of and interest on the bonds; providing for the submission of this act to the people at a general election; and making an appropriation therefor.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. This act shall be known and may be cited as the "New Jersey Stem Cell Research Bond Act of 2005."

2. The Legislature finds and declares that:

a. Millions of people suffer from currently chronic, debilitating and often incurable diseases, including cancer, diabetes, heart disease, Alzheimer's disease, Huntington's disease, Parkinson's disease, Lou Gherig's disease, blindness, HIV/AIDS, mental health disorders and multiple sclerosis, as well as irreversible injuries; and

b. New regenerative medical therapies, such as those that include the use of human stem cells, offer immense promise for the development of cures and more effective treatments for many of these devastating diseases and irreversible injuries; and

c. It is the policy of this State, as established by P.L.2003, c.203, that stem cell research that is conducted ethically and in accordance with the highest scientific standards shall be permitted; and

d. The development of new cures and more effective treatments resulting from stem cell research has the potential to improve the quality of care for New Jersey residents, reduce long-term health care costs and benefit the New Jersey economy; and

e. New Jersey, as home to many of the leading companies and institutions engaged in life sciences, biotechnology and pharmaceutical research, should preserve its leading role in attracting investment in cutting-edge research; and

f. Financing stem cell research will substantially further the public interest by facilitating the transition of basic research into lifesaving clinical applications for New Jersey residents, and can most economically be financed through a general obligation bond issuance duly approved by the voters of this State.

3. As used in this act:

"Approved research project" means a stem cell research project proposed by a qualified research institution that has been approved by the commission, a research review panel and an ethics review panel, pursuant to section 5 of this act;

"Bonds" mean the bonds authorized to be issued, or issued, under this act;

"Commission" means the New Jersey Commission on Science and Technology as established by section 3 of P.L.1985, c.102 (C.52:9X-3);

"Cost" means the expenses incurred in connection with: the procurement of legal, financial, or other professional services, including the services of a bond registrar or an authenticating agent; the issuance of bonds, or any interest or discount thereon; the establishment of a reserve fund or funds for the payment or security of principal or interest on bonds, as the Director of the Division of Budget and Accounting in the Department of the Treasury may determine; the reimbursement to any fund of the State of moneys which may have been transferred or advanced therefrom to any fund created by this act, or of any moneys which may have been expended therefrom for, or in connection with, any approved research project authorized by this act; or any other expenses incurred in connection with the administrative, organizational or operating expenses incident to the financing, completing and placing into service of any stem cell research grant authorized by this act;

"Ethics review panel" means an independent panel, to be established by the commission to review research procedures to ensure research proposed for funding pursuant to this act will be conducted in a scientifically sound and ethical manner in accordance with federal law and policies and State law; such a panel shall include, but need not be limited to, the following: recognized bioethicists, members of academic and religious communities and at least one member who currently serves on an institutional review board;

"Government securities" means any bonds or other obligations which as to principal and interest constitute direct obligations of, or are unconditionally guaranteed by, the United States of America, including obligations of any federal agency, to the extent those obligations are unconditionally guaranteed by the United States of America, and any certificates or any other evidences of an ownership interest in those obligations of, or unconditionally guaranteed by, the United States of America or in specified portions which may consist of the principal of, or the interest on, those obligations;

"Human cloning" means human asexual reproduction accomplished by introducing nuclear material from one or more human cells into a fertilized or unfertilized oocyte whose nuclear material has been removed or inactivated so as to produce a human fetus that is substantially genetically identical to a previously born human being;

"Qualified research institution" means an academic medical institution, university, State or local government agency, or public or private entity located within the State; or any other entity in the State which conducts scientific and medical research and is approved by the commission, the research review panel and the ethics review panel, as provided by this act; provided, however, that a for-profit entity shall enter into a collaborative agreement with a New Jersey-based nonprofit institution in order to be eligible to receive a stem cell research grant pursuant to this act;

"Research grant" means a grant awarded to a qualified research institution pursuant to this act to fund all expenses incurred in connection with scientific and medical research including, but not limited to, basic research, regenerative therapy development and the development of pharmacologies and treatments through clinical trials;

"Research review panel" means an independent panel, to be established by the commission in order to effectuate the provisions of section 5 of this act; such a panel shall include, but need not be limited to, nationally recognized experts in the field of stem cell research;

"Stem cell" means any unspecialized or undifferentiated cell that can self-replicate and has the potential to differentiate into a specialized cell type.

4. The commission shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968 c.410 (C.52:14B-1 et seq.), rules and regulations necessary to implement the provisions of this act.

5. a. Bonds of the State of New Jersey are authorized to be issued in the aggregate principal amount of $230 million, to be distributed over seven years, for the purpose of financing the costs of providing stem cell research grants to qualified research institutions; provided, however, that the stem cell research grants be subject to appropriation pursuant to the provisions of section 15 of this act.

b. The commission shall administer the stem cell research grant program and solicit and evaluate stem cell research grant applications. The commission shall designate a research review panel composed of nationally recognized experts in stem cell research to review stem cell research grant applications. The commission shall likewise designate an ethics review panel to ensure that stem research conducted pursuant to this act will be carried out in a scientifically sound and ethical manner in accordance with federal law and policies and State law.

The commission, after receiving recommendations from the research review panel, shall prepare a list of eligible approved research projects which:

(1) are likely to result in research that can be applied to therapies to treat major diseases or injuries;

(2) will be conducted in a scientifically sound and ethical manner in accordance with federal law and policies and State law including, but not limited to, P.L.2003, c.203 (C.26:2Z-1 et seq.); and

(3) are unlikely to receive timely or sufficient federal funding.

The list shall be submitted to the ethics review panel for final approval. A stem cell research grant awarded to a qualified research institution shall be contingent upon approval by the ethics review panel and approval by the qualified research institution's institutional review board operating in accordance with applicable federal regulations.

Funds shall be appropriated by the Legislature only in accordance with the priority list approved by the ethics review panel. A directory of the qualified research institutions receiving stem cell research grants and the amount of each grant award shall be made available to the public on an annual basis.

c. The State Treasurer shall require a qualified research institution to make payments to the State in an amount representing a reasonable return on the investment made pursuant to this act if the qualified research institution realizes a financial gain or benefit directly associated with an approved research project funded pursuant to this act. The amount of the payment shall equal one percent of any financial gain or benefit directly associated with an approved research project funded pursuant to this act, and shall be subject to such terms and conditions as the State Treasurer may require.

d. A qualified research institution shall indemnify or insure and hold the State harmless against any and all losses, claims, damages, expenses or liabilities, including attorney fees, arising from the research it conducts pursuant to a stem cell research grant awarded pursuant to this act. In the alternative, qualified research institutions shall name the State as an additional insured and submit proof of such insurance.

e. No funds authorized for, or made available to, qualified research institutions pursuant to this act shall be used for the purpose of human cloning, which is a crime under section 3 of P.L.2003, c.203 (C.2C:11A-1).

6. The bonds authorized under this act shall be serial bonds, term bonds, or a combination thereof, and shall be known as "Stem Cell Research Bonds." They shall be issued from time to time as the issuing officials herein named shall determine and may be issued in coupon form, fully-registered form or book-entry form. The bonds may be subject to redemption prior to maturity and shall mature and be paid not later than 35 years from the respective dates of their issuance.

7. The Governor, the State Treasurer and the Director of the Division of Budget and Accounting in the Department of the Treasury, or any two of these officials, herein referred to as "the issuing officials," are authorized to carry out the provisions of this act relating to the issuance of bonds, and shall determine all matters in connection therewith, subject to the provisions of this act. If an issuing official is absent from the State or incapable of acting for any reason, the powers and duties of that issuing official shall be exercised and performed by the person authorized by law to act in an official capacity in the place of that issuing official.

8. Bonds issued in accordance with the provisions of this act shall be a direct obligation of the State of New Jersey, and the faith and credit of the State are pledged for the payment of the interest and redemption premium thereon, if any, when due, and for the payment of the principal thereof at maturity or earlier redemption date. The principal of and interest on the bonds shall be exempt from taxation by the State or by any county, municipality or other taxing district of the State.

9. The bonds shall be signed in the name of the State by means of the manual or facsimile signature of the Governor under the Great Seal of the State, which seal may be by facsimile or by way of any other form of reproduction on the bonds, and attested by the manual or facsimile signature of the Secretary of State, or an Assistant Secretary of State, and shall be countersigned by the facsimile signature of the Director of the Division of Budget and Accounting in the Department of the Treasury and may be manually authenticated by an authenticating agent or bond registrar, as the issuing official shall determine. Interest coupons, if any, attached to the bonds shall be signed by the facsimile signature of the Director of the Division of Budget and Accounting in the Department of the Treasury. The bonds may be issued notwithstanding that an official signing them or whose manual or facsimile signature appears on the bonds or coupons has ceased to hold office at the time of issuance, or at the time of the delivery of the bonds to the purchaser thereof.

10. a. The bonds shall recite that they are issued for the purposes set forth in section 5 of this act, that they are issued pursuant to this act, that this act was submitted to the people of the State at the general election held in the month of November 2005, and that this act was approved by a majority of the legally qualified voters of the State voting thereon at the election. This recital shall be conclusive evidence of the authority of the State to issue the bonds and their validity. Any bonds containing this recital shall, in any suit, action or proceeding involving their validity, be conclusively deemed to be fully authorized by this act and to have been issued, sold, executed and delivered in conformity herewith
and with all other provisions of laws applicable hereto, and shall be incontestable for any cause.

b. The bonds shall be issued in those denominations and in the form or forms, whether coupon, fully-registered or book-entry, and with or without provisions for interchangeability thereof, as may be determined by the issuing officials.

11. When the bonds are issued from time to time, the bonds of each issue shall constitute a separate series to be designated by the issuing officials. Each series of bonds shall bear such rate or rates of interest as may be determined by the issuing officials, which interest shall be payable semiannually; except that the first and last interest periods may be longer or shorter, in order that intervening semiannual payments may be at convenient dates.

12. The bonds shall be issued and sold at the price or prices and under the terms, conditions and regulations as the issuing officials may prescribe, after notice of the sale, published at least once in at least three newspapers published in this State, and at least once in a publication carrying municipal bond notices and devoted primarily to financial news, published in this State or in the city of New York, the first notice to appear at least five days prior to the day of bidding. The notice of sale may contain a provision to the effect that any bid in pursuance thereof may be rejected. In the event of rejection or failure to receive any acceptable bid, the issuing officials, at any time within 60 days from the date of the advertised sale, may sell the bonds at a private sale at such price or prices under the terms and conditions as the issuing officials may prescribe. The issuing officials may sell all or part of the bonds of any series as issued to any State fund or to the federal government or any agency thereof, at a private sale, without advertisement.

13. Until permanent bonds are prepared, the issuing officials may issue temporary bonds in the form and with those privileges as to their registration and exchange for permanent bonds as may be determined by the issuing officials.

14. The proceeds from the sale of bonds used to finance the costs of providing stem cell research grants to qualified research institutions for approved research projects shall be paid to the State Treasurer and be held by the State Treasurer in a separate fund, and be deposited in such depositories as may be selected by the State Treasurer to the credit of the fund, which fund shall be known as the "Stem Cell Research Fund."

15. a. The moneys in the "Stem Cell Research Fund" are specifically dedicated and shall be applied to the purpose of financing the costs of providing stem cell research grants as set forth in section 5 of this act. However, no moneys in the fund shall be expended for those purposes, except as otherwise authorized by this act, without the specific appropriation thereof by the Legislature, but bonds may be issued as herein provided, notwithstanding that the Legislature shall not have then adopted an act making a specific appropriation of any of the moneys. Any act appropriating moneys from the "Stem Cell Research Fund" shall identify the project to be funded by the moneys.

b. At any time prior to the issuance and sale of bonds under this act, the State Treasurer is authorized to transfer from any available moneys in any fund of the treasury of the State to the credit of the "Stem Cell Research Fund" those sums as the State Treasurer may deem necessary. The sums so transferred shall be returned to the same fund of the treasury of the State by the State Treasurer from the proceeds of the sale of the first issue of bonds.

c. Pending their application to the purposes provided in this act, the moneys in the "Stem Cell Research Fund" may be invested and reinvested as are other trust funds in the custody of the State Treasurer, in the manner provided by law. Net earnings received from the investment or deposit of moneys in the "Stem Cell Research Fund" shall be paid into the General Fund.

16. If any coupon bond, coupon or registered bond is lost, mutilated or destroyed, a new bond or coupon shall be executed and delivered of like tenor, in substitution for the lost, mutilated or destroyed bond or coupon, upon the owner furnishing to the issuing officials evidence satisfactory to them of the loss, mutilation or destruction of the bond or coupon, the ownership thereof, and security, indemnity and reimbursement for expenses connected therewith, as the issuing officials may require.

17. The accrued interest, if any, received upon the sale of the bonds shall be applied to the discharge of a like amount of interest upon the bonds when due. Any expense incurred by the issuing officials for advertising, engraving, printing, clerical, authenticating, registering, legal or other services necessary to carry out the duties imposed upon them by the provisions of this act shall be paid from the proceeds of the sale of the bonds by the State Treasurer, upon the warrant of the Director of the Division of Budget and Accounting in the Department of the Treasury, in the same manner as other obligations of the State are paid.

18. Bonds of each series issued hereunder shall mature, including any sinking fund redemptions, not later than the 35th year from the date of issue of that series, and in amounts as shall be determined by the issuing officials. The issuing officials may reserve to the State by appropriate provision in the bonds of any series the power to redeem any of the bonds prior to maturity at the price or prices and upon the terms and conditions as may be provided in the bonds.

19. Any bond or bonds issued hereunder which are subject to refinancing pursuant to the "Refunding Bond Act of 1985," P.L.1985, c.74 as amended by P.L.1992, c.182 (C.49:2B-1 et seq.), shall no longer be deemed to be outstanding, shall no longer constitute a direct obligation of the State of New Jersey, and the faith and credit of the State shall no longer be pledged to the payment of the principal of, redemption premium, if any, and interest on the bonds, and the bonds shall be secured solely by and payable solely from moneys and government securities deposited in trust with one or more trustees or escrow agents, which trustees and escrow agents shall be trust companies or national or state banks having powers of a trust company, located either within or without the State, as provided herein, whenever there shall be deposited in trust with the trustees or escrow agents, as provided herein, either moneys or government securities, including government securities issued or held in book-entry form on the books of the Department of Treasury of the United States, the principal of and interest on which when due will provide money which, together with the moneys, if any, deposited with the trustees or escrow agents at the same time, shall be sufficient to pay when due the principal of, redemption premium, if any, and interest due and to become due on the bonds on or prior to the redemption date or maturity date thereof, as the case may be; provided the government securities shall not be subject to redemption prior to their maturity other than at the option of the holder thereof. The State of New Jersey hereby covenants with the holders of any bonds for which government securities or moneys shall have been deposited in trust with the trustees or escrow agents as provided in this section that, except as otherwise provided in this section, neither the government securities nor moneys so deposited with the trustees or escrow agents shall be withdrawn or used by the State for any purpose other than, and shall be held in trust for, the payment of the principal of, redemption premium, if any, and interest to become due on the bonds; provided that any cash received from the principal or interest payments on the government securities deposited with the trustees or escrow agents, to the extent the cash will not be required at any time for that purpose, shall be paid over to the State, as received by the trustees or escrow agents, free and clear of any trust, lien, pledge or assignment securing the bonds; and to the extent the cash will be required for that purpose at a later date, shall, to the extent practicable and legally permissible, be reinvested in government securities maturing at times and in amounts sufficient to pay when due the principal of, redemption premium, if any, and interest to become due on the bonds on and prior to the redemption date or maturity date thereof, as the case may be, and interest earned from the reinvestments shall be paid over to the State, as received by the trustees or escrow agents, free and clear of any trust, lien or pledge securing the bonds. Notwithstanding anything to the contrary contained herein: a. the trustees or escrow agents shall, if so directed by the issuing officials, apply moneys on deposit with the trustees or escrow agents pursuant to the provisions of this section, and redeem or sell government securities so deposited with the trustees or escrow agents, and apply the proceeds thereof to (1) the purchase of the bonds which were refinanced by the deposit with the trustees or escrow agents of the moneys and government securities and immediately thereafter cancel all bonds so purchased, or (2) the purchase of different government securities; provided however, that the moneys and government securities on deposit with the trustees or escrow agents after the purchase and cancellation of the bonds or the purchase of different government securities shall be sufficient to pay when due the principal of, redemption premium, if any, and interest on all other bonds in respect of which the moneys and government securities were deposited with the trustees or escrow agents on or prior to the redemption date or maturity date thereof, as the case may be; and b. in the event that on any date, as a result of any purchases and cancellations of bonds or any purchases of different government securities, as provided in this sentence, the total amount of moneys and government securities remaining on deposit with the trustees or escrow agents is in excess of the total amount which would have been required to be deposited with the trustees or escrow agents on that date in respect of the remaining bonds for which the deposit was made in order to pay when due the principal of, redemption premium, if any, and interest on the remaining bonds, the trustees or escrow agents shall, if so directed by the issuing officials, pay the amount of the excess to the State, free and clear of any trust, lien, pledge or assignment securing the refunding bonds.

20. Refunding bonds issued pursuant to P.L.1985, c.74 as amended by P.L.1992, c.182 (C.49:2B-1 et seq.) may be consolidated with bonds issued pursuant to section 5 of this act or with bonds issued pursuant to any other act for purposes of sale.

21. To provide funds to meet the interest and principal payment requirements for the bonds and refunding bonds issued under this act and outstanding, there is appropriated in the order following:

a. Revenue derived from the collection of taxes under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), or so much thereof as may be required; and

b. If, at any time, funds necessary to meet the interest, redemption premium, if any, and principal payments on outstanding bonds issued under this act are insufficient or not available, there shall be assessed, levied and collected annually in each of the municipalities of the counties of this State, a tax on the real and personal property upon which municipal taxes are or shall be assessed, levied and collected, sufficient to meet the interest on all outstanding bonds issued hereunder and on the bonds proposed to be issued under this act in the calendar year in which the tax is to be raised and for the payment of bonds falling due in the year following the year for which the tax is levied. The tax shall be assessed, levied and collected in the same manner and at the same time as are other taxes upon real and personal property. The governing body of each municipality shall cause to be paid to the county treasurer of the county in which the municipality is located, on or before December 15 in each year, the amount of tax herein directed to be assessed and levied, and the county treasurer shall pay the amount of the tax to the State Treasurer on or before December 20 in each year.

If on or before December 31 in any year, the issuing officials, by resolution, determine that there are moneys in the General Fund beyond the needs of the State, sufficient to pay the principal of bonds falling due and all interest and redemption premium, if any, payable in the ensuing calendar year, the issuing officials shall file the resolution in the office of the State Treasurer, whereupon the State Treasurer shall transfer the moneys to a separate fund to be designated by the State Treasurer, and shall pay the principal, redemption premium, if any, and interest out of that fund as the same shall become due and payable, and the other sources of payment of the principal, redemption premium, if any, and interest provided for in this section shall not then be available, and the receipts for the year from the tax specified in subsection a. of this section shall be considered and treated as part of the General Fund, available for general purposes.

22. Should the State Treasurer, by December 31 of any year, deem it necessary, because of the insufficiency of funds collected from the sources of revenues as provided in this act, to meet the interest and principal payments for the year after the ensuing year, then the State Treasurer shall certify to the Director of the Division of Budget and Accounting in the Department of the Treasury the amount necessary to be raised by taxation for those purposes, the same to be assessed, levied and collected for and in the ensuing calendar year. The director shall, on or before March 1 following, calculate the amount in dollars to be assessed, levied and collected in each county as herein set forth. This calculation shall be based upon the corrected assessed valuation of each county for the year preceding the year in which the tax is to be assessed, but the tax shall be assessed, levied and collected upon the assessed valuation of the year in which the tax is assessed and levied. The director shall certify the amount to the county board of taxation and the treasurer of each county. The county board of taxation shall include the proper amount in the current tax levy of the several taxing districts of the county in proportion to the ratables as ascertained for the current year.

23. For the purpose of complying with the provisions of the State Constitution, this act shall be submitted to the people at the general election next occurring at least 70 days after enactment. To inform the people of the contents of this act, it shall be the duty of the Attorney General, after this section takes effect, and at least 60 days prior to the election, to cause this act to be published at least once in one or more newspapers of each county, if any newspapers be published therein and to notify the clerk of each county of this State of the passage of this act; and the clerks respectively, in accordance with the instructions of the Attorney General, shall have printed on each of the ballots the following:

If you approve of the act entitled below, make a cross (x), plus (+), or check (T ) mark in the square opposite the word "Yes."

If you disapprove of the act entitled below, make a cross (x), plus (+), or check (T ) mark in the square opposite the word "No."

If voting machines are used, a vote of "Yes" or "No" shall be equivalent to these markings respectively.

		STEM CELL RESEARCH BOND ISSUE
	YES	Shall the "New Jersey Stem Cell Research Bond Act of 2005," which authorizes the State to issue bonds in the amount of $230 million over seven years for grants to fund stem cell research at universities, academic medical institutions and other entities conducting scientific and medical research and providing the ways and means to pay the interest on the debt and also to pay and discharge the principal thereof, be approved?
		INTERPRETIVE STATEMENT
	NO	Approval of this act would authorize the sale of $230 million in State general obligation bonds to provide grants for stem cell research at universities, academic medical institutions and other scientific and medical research entities in the State. Applications for grants would be subject to evaluation by the Commission on Science and Technology, a research review panel composed of experts in stem cell research and an ethics review panel. The act also requires a grant recipient to repay the State a reasonable return on its investment, in the event that the recipient realizes a financial gain or benefit directly associated with the stem cell research it conducts. No funds can be used to clone a human being. The purpose of providing these funds is to promote research that could benefit State residents afflicted with diseases and severe injuries such as Alzheimer's disease, cancer, diabetes, Parkinson's disease and spinal cord injuries.

The fact and date of the approval or passage of this act, as the case may be, may be inserted in the appropriate place after the title in the ballot. No other requirements of law of any kind or character as to notice or procedure, except as herein provided, need be adhered to.

The votes so cast for and against the approval of this act, by ballot or voting machine, shall be counted and the result thereof returned by the election officer, and a canvass of the election had in the same manner as is provided for by law in the case of the election of a Governor, and the approval or disapproval of this act so determined shall be declared in the same manner as the result of an election for a Governor, and if there is a majority of all the votes cast for and against it at the election in favor of the approval of this act, then all the provisions of this act not made effective theretofore shall take effect forthwith.

24. There is appropriated the sum of $5,000 to the Department of Law and Public Safety for expenses in connection with the publication of notice pursuant to section 23 of this act.

25. The commission shall submit to the State Treasurer a plan for the expenditure of funds from the "Stem Cell Research Fund" for the upcoming fiscal year. This plan shall include the following information: a performance evaluation of the expenditures made from the funds to date; a description of approved research projects planned during the upcoming fiscal year; a copy of the regulations in force governing the operation of approved research projects that are financed, in part or in whole, by funds from the "Stem Cell Research Fund" and an estimate of expenditures for the upcoming fiscal year.

26. Immediately following the submission to the Legislature of the Governor's annual budget message, the commission shall submit to the Health, Human Services and Senior Citizens Committee of the Senate and the Health and Human Services Committee of the General Assembly, or their designated successors, and to the Joint Budget Oversight Committee, or its successor, a copy of the plan called for under section 25 of this act, together with such changes therein as may have been required by the Governor's budget message.

27. All appropriations from the "Stem Cell Research Fund" shall be allocations for the costs of financing stem cell research grants, and any transfer of any funds so appropriated shall require the approval of the Joint Budget Oversight Committee, or its successor.

28. This section and sections 23 and 24 of this act shall take effect immediately and the remainder of this act shall take effect as and when provided in section 23.

STATEMENT

This bill, the "Stem Cell Research Bond Act of 2005," authorizes the issuance of $230 million in State general obligation bonds for the purpose of financing the costs of providing stem cell research grants to qualified research institutions over seven years.

As defined in the bill, "qualified research institution" means academic medical institutions, universities, State or local government agencies, or public or private entities conducting scientific or medical research in the State; provided, however, that for-profit entities must enter into collaborative agreements with nonprofit institutions.

The bill provides that the Commission on Science and Technology shall establish a research review panel and an ethics review panel in order to administer the grant program and make grant awards. The research review panel shall include, but need not be limited to, nationally recognized experts in the field of stem cell research. The ethics review panel shall include, but need not be limited to, recognized bioethicists, members of academic and religious communities and at least one member who currently serves on an institutional review board.

Pursuant to the bill, the commission shall solicit grant applications from qualified research institutions to fund scientific and medical stem cell research including, but not limited to, basic research, regenerative therapy development and the development of pharmacologies and treatments through clinical trials. The grant applications shall be evaluated by the research review panel.

The commission, after receiving the recommendations from the research review panel, shall prepare a list of eligible stem cell research grants: which are likely to result in research that can be applied to therapies to treat major diseases or injuries; are unlikely to receive federal funding; and are conducted safely and ethically. The list shall then be submitted to the ethics review panel for final approval to ensure that all research will be conducted in a scientifically sound and ethical manner in accordance with federal law and policies and State law. No funds shall be used for the purposes of human cloning, which is a crime under N.J.S.A.2C:11A-1.

The bill also requires a qualified research institution to reimburse the State one percent of any financial gain or benefit it realizes from the stem cell research it conducts pursuant to its grant award. Further, the bill ensures that a qualified research institution will not hold the State liable for losses arising from the research it conducts pursuant to a grant award.

Finally, the bill provides that the bond act is to be submitted to the people for approval at the general election to be held November 2005 and appropriates $5,000 to the Department of Law and Public Safety for expenses in connection with the publication of the public question.