The University of California at Los Angeles will spend $20 million over five years to establish a stem cell research institute and compete for new state funds to fight cancer and other diseases, university officials said on Wednesday.

UCLA will focus on research in three areas: HIV and AIDS, cancer, and neurological disorders like Parkinson’s disease, said Dr. Owen Witte, a professor of microbiology, immunology and molecular genetics, who will head the unit.
UCLA is one of the first big California universities to get in line for research grants and loans to be issued under a $3 billion state program.

California in November voted to spend $300 million a year of state bond money for 10 years to conduct stem cell research and to develop possible treatments and cures for a range of diseases like diabetes and Alzheimer’s disease.

UCLA’s Institute for Stem Cell Biology and Medicine will conduct embryonic and adult stem cell research, creating 12 faculty positions, and expanding laboratory space.

“Embryonic stem cells have the power to develop into every type of human tissue,” Witte said.

Most scientists believe it will take years of work to gain more understanding of stem cells and develop treatments.

A 29-member Independent Citizens Oversight Committee (ICOC) appointed by Gov. Arnold Schwarzenegger and other elected officials, will direct the new California Institute for Regenerative Medicine, which will and award grants and loans.

San Francisco, Los Angeles and other cities are competing for the permanent headquarters for the institute. The agency is working from a temporary office in Emeryville, across the bay from San Francisco.

California moved to set up its own scientific program after President George W. Bush clamped down on federal research into stem cells, citing ethical concerns in sharply curbing federal spending.