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ROBERT N. Klein, the millionaire Portola Valley real estate developer, was sworn in Friday to lead California's $3 billion venture into stem cell research.

Klein, 59, was the main promoter of Proposition 71 on the Nov. 2 ballot and was selected to head the new California Institute for Regenerative Medicine by Republican Gov. Arnold Schwarzenegger and Democrats Lt. Gov. Cruz Bustamante and state Controller Steve Westly.

He was sworn in at the first meeting of a 29-member board created by Proposition 71 to direct the new institute's activities. The state is expected to raise up to $350 million a year in bonds to finance the search for cures for major illnesses using stem cells for the next decade, including the funding of research grants and construction of facilities.

Ed Penhoet, co-founder of Emeryville's Chiron Corp., was chosen from three nominees to serve as vice chairman of the institute's board, known as the Independent Citizens Oversight Committee.

The first meeting originally had a longer agenda but it was cut back to selecting new leaders after concerns were raised about violating the...