Codey said bioethics expert Harold T. Shapiro, former president of Princeton University, will preside over a panel charged with ensuring New Jersey's state-funded research will comply with state guidelines. Shapiro served as chairman of the National Bioethics Advisory Commission through much of former President Bill Clinton's administration.

The acting governor made the announcement at a conference on policy and economic implications of state-sponsored stem cell research.

"Fifteen of the world's largest pharmaceutical companies call New Jersey home. We have more scientists, engineers and technicians per capita than virtually any state in the country," Codey said. "New Jersey is a natural place for stem cell research, and we must be willing to put state dollars behind its potential."

In his January State of the State address, Codey committed $150 million to build a stem cell research center in New Brunswick. He also proposed a November general election ballot question to ask voters if the state should borrow $230 million to finance stem cell research grants.

A year earlier, New Jersey became the second state in the nation to publicly support stem cell research, modeling its policy on a California measure. In May 2004, then-Gov. James E. McGreevey signed an agreement to create the state-funded research institute.

Proponents say stem cells, immature cells that develop into specialized cells of the brain, heart and other organs, one day may be used to repair damaged cells, giving scientists hope that cures for spinal cord injuries and ailments such as diabetes and Parkinson's disease can be found.

The controversy surrounding the research comes from the fact that stem cells are produced in the first days of human embryonic growth, and are sometimes obtained by destroying days-old embryos. That procedure is condemned by the Roman Catholic Church, abortion foes and others.

The Bush administration has sharply restricted federal funding for stem cell research involving destruction of human embryos. Researchers also are using stem cells culled from umbilical cord blood, bone marrow and other sources, but their uses may be more limited.

Marie Tasy, executive director of New Jersey Right to Life, issued a statement critical of Codey's plans. Tasy said Codey was pushing state spending on the stem cell institute without gaining legislative approval.

She also questioned the effectiveness of human embryonic stem cells, saying scientists have not yet been able to use them "in animals, let alone in humans." By comparison, Tasy said, stem cells taken from bone marrow or umbilical cord blood have been used in about 300 clinical human trials and for treatment of Parkinson's disease and spinal cord injuries.

Copyright 2005 Associated Press. All rights reserved.

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