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As California moves to begin a lushly financed program of embryonic stem cell research, medical ethicists and other skeptics are concerned that the $3 billion that state voters approved for the endeavor could become a bonanza for private profiteers.

Critics say the ballot measure that passed by a wide margin on Nov. 2 contains inadequate safeguards to ensure public oversight of the financial allocations and guarantee public benefit from any medical breakthroughs. They also worry that the promise of stem cell studies has been oversold to the public and say the money might better be directed to more mature medical technologies.

Even those who support human embryonic stem cell research voice concern that the program will be captured by advocates for research into certain diseases or narrow lines of inquiry, and that the public will have little say in how the money is spent.

Lt. Gov. Cruz Bustamante, a supporter of the ballot proposition, recently said that he expected California to become a magnet for stem cell researchers pushing the edge of medical science.

"It's this century's gold rush," Mr...