Can tax-exempt bonds finance stem-cell facilities?

In his well-publicized directive on stem cells, President Bush was clear: Federal funds may finance scientific research only on certain stem-cell lines in existence on or before Aug. 9, 2001. Less clear, however, is the issue of whether the financing of a facility with tax-exempt bonds restricts the type of stem-cell research performed at the facility. The issue is particularly pressing in California, where voters have made up to $10 billion available to support human embryonic stem-cell research. In a recent BNA article, John Chesley and Glenn Krinsky, health care partners at Ropes & Gray, analyze the issue and conclude that using tax-exempt bonds to finance a facility does not restrict ensuing stem-cell research. Click "Download PDF" above to read their article.