To ensure that efforts to address world hunger through the use of genetically engineered animals and crops actually help developing countries and peoples while protecting human health and the environment, and for other purposes.

Summary: Real Solutions to World Hunger Act of 2002 - Makes it unlawful for any person to ship, or offer to ship, or for any carrier or person to transport, or receive for transportation, to any foreign country, any genetically engineered animal, plant, or seed (as defined by this Act) if the person knows or has reason to believe that the engineered article will be used to produce an agricultural commodity if: (1) such article was denied Federal approval for U.S. marketing, or its application for approval was withdrawn; or (2) the foreign government has not certified that related ecological impacts of such article have been satisfactorily mitigated.Authorizes the Secretary of Agriculture to make grants to designated international research institutions to promote development of sustainable agricultural techniques (which may not derive any genetic engineered material) that rely on minimum artificial inputs to meet developing countries' food and fiber needs.Directs the Secretary of the Treasury to instruct the United States Executive Director at each international financial institution to make no effort to encourage the institution from prohibiting countries eligible for certain assistance from requiring compulsory licensing of genetically engineered animals, plants, or seeds.Amends the Internal Revenue Code to: (1) impose a tax on a corporation equal to one percent of the gross income that is attributable to the U.S. marketing of any genetically engineered organism (as defined by this Act), or the holding of a patent on any such organism; and (2) establish in the Treasury the Sustainable Agriculture Trust Fund.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS; FINDINGS.

    (a) Short Title.--This Act may be cited as the ``Real Solutions to 
World Hunger Act of 2002''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents; findings.
Sec. 2. Definitions.
Sec. 3. Ensuring safety and mitigating ecological impacts of United 
                            States exports of genetically engineered 
                            animals, plants, and seeds.
Sec. 4. Promotion of international research regarding sustainable 
                            agriculture to assist developing countries.
Sec. 5. Position of the United States in the international financial 
                            institutions regarding genetically 
                            engineered animals, plants, and seeds.
Sec. 6. Tax on biotech companies to help fund sustainable agriculture 
                            research.
    (c) Findings.--Congress finds the following:
            (1) The need for mandatory labeling, safety testing, and 
        environmental reviews of genetically engineered foods do not 
        constitute obstacles to the cessation of world hunger.
            (2) The dominant causes of world hunger are not 
        technological in nature, but rooted in basic social-economic 
        failures.
            (3) Technologies, like genetically engineered food, may 
        have a limited role, but economics remain the significant 
        barrier to a consistent food supply, and the development of 
        expensive genetically engineered foods may only exacerbate this 
        trend.
            (4) Most genetically engineered food products and almost 
        all research funding for the development of genetically 
        engineered food target developed nation agriculture and 
        consumers. Developing countries cannot afford this technology 
        and therefore are vastly ignored.
            (5) Agroecological interventions have had significant 
        success in helping developing nations feed themselves with 
higher yields and improved environmental practices, all within 
reasonable costs for developing countries.
            (6) If the biotech industry believes they can help mitigate 
        hunger concerns, domestic or foreign, then requiring biotech 
        companies to make available the necessary resources for this 
        purpose is appropriate.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Genetically engineered animal.--The term ``genetically 
        engineered animal'' means an animal that contains a genetically 
        engineered material or was produced with a genetically 
        engineered material. An animal shall be considered to contain a 
        genetically engineered material or to have been produced with a 
        genetically engineered material if the animal has been injected 
        or otherwise treated with a genetically engineered material or 
        is the offspring of an animal that has been so injected or 
        treated.
            (2) Genetically engineered plant.--The term ``genetically 
        engineered plant'' means a plant that contains a genetically 
        engineered material or was produced from a genetically 
        engineered seed. A plant shall be considered to contain a 
        genetically engineered material if the plant has been injected 
        or otherwise treated with a genetically engineered material 
        (except that the use of manure as a fertilizer for the plant 
        may not be construed to mean that the plant is produced with a 
        genetically engineered material).
            (3) Genetically engineered seed.--The term ``genetically 
        engineered seed'' means a seed that contains a genetically 
        engineered material or was produced with a genetically 
        engineered material. A seed shall be considered to contain a 
        genetically engineered material or to have been produced with a 
        genetically engineered material if the seed (or the plant from 
        which the seed is derived) has been injected or otherwise 
        treated with a genetically engineered material (except that the 
        use of manure as a fertilizer for the plant may not be 
        construed to mean that any resulting seeds are produced with a 
        genetically engineered material).
            (4) Genetically engineered material.--The term 
        ``genetically engineered material'' means material that has 
        been altered at the molecular or cellular level by means that 
        are not possible under natural conditions or processes 
        (including recombinant DNA and RNA techniques, cell fusion, 
        microencapsulation, macroencapsulation, gene deletion and 
        doubling, introducing a foreign gene, and changing the 
        positions of genes), other than a means consisting exclusively 
        of breeding, conjugation, fermentation, hybridization, in vitro 
        fertilization or tissue culture or mutagenesis.
            (5) Biotech company.--The term ``biotech company'' means a 
        person engaged in the business of creating genetically 
        engineered material and obtaining the patent rights to that 
        material for the purposes of commercial exploitation of that 
        material. The term does not include the employees of such 
        person.

SEC. 3. ENSURING SAFETY AND MITIGATING ECOLOGICAL IMPACTS OF UNITED 
              STATES EXPORTS OF GENETICALLY ENGINEERED ANIMALS, PLANTS, 
              AND SEEDS.

    It shall be unlawful for any person to ship or offer for shipment, 
or for any carrier or other person to transport or receive for 
transportation, to any foreign country, any genetically engineered 
animal, genetically engineered plant, or genetically engineered seed 
that the person knows, or has reason to believe, will be used by the 
ultimate purchaser to produce an agricultural commodity if--
            (1) the genetically engineered animal, genetically 
        engineered plant, or genetically engineered seed--
                    (A) was denied a Federal approval necessary as a 
                condition for commercial marketing in the United 
                States; or
                    (B) was the subject of an application for such a 
                Federal approval that was withdrawn; or
            (2) the government of the foreign country has not certified 
        that ecological impacts related to the importation of the 
        genetically engineered animal, genetically engineered plant, or 
        genetically engineered seed have been mitigated to the 
        satisfaction of the foreign government.

SEC. 4. PROMOTION OF INTERNATIONAL RESEARCH REGARDING SUSTAINABLE 
              AGRICULTURE TO ASSIST DEVELOPING COUNTRIES.

    (a) Grants for International Research.--The Secretary of 
Agriculture may make grants to designated international research 
institutions for the purpose of promoting the development of 
sustainable agriculture techniques that rely on minimum artificial 
inputs to meet the food and fiber needs of developing countries. 
Eligible sustainable agriculture techniques may not derive any genetic 
engineered material.
    (b) Use of Grant Funds.--A grant recipient shall use the funds 
provided under this section only in a manner consistent with the 
purpose for which the grant is awarded.
    (c) Designated Institutions.--The Secretary of Health and Human 
Services shall designate the international research institutions 
eligible to apply for a grant under this section. The designated 
institutions shall include the United Nations Food and Agriculture 
Organization and the Consultative Group on International Agricultural 
Research.
    (d) Competitive Basis.--Grants under this section shall be made on 
a competitive basis.
    (e) Funding Source.--The Secretary of Agriculture shall use the 
Sustainable Agriculture Trust Fund, in such amounts as provided in 
advance in appropriation Acts, to make grants under this section.

SEC. 5. POSITION OF THE UNITED STATES IN THE INTERNATIONAL FINANCIAL 
              INSTITUTIONS REGARDING GENETICALLY ENGINEERED ANIMALS, 
              PLANTS, AND SEEDS.

    The Secretary of the Treasury shall instruct the United States 
Executive Director at each international financial institution (as 
defined in section 1701(c)(2) of the International Financial 
Institutions Act) to make no effort to encourage the institution to 
prohibit any country eligible for assistance under the Heavily Indebted 
Poor Countries (HIPC) Initiative of the International Bank for 
Reconstruction and Development from requiring compulsory licensing with 
respect to any genetically engineered animal, genetically engineered 
plant, or genetically engineered seed.

SEC. 6. TAX ON BIOTECH COMPANIES TO HELP FUND SUSTAINABLE AGRICULTURE 
              RESEARCH.

    (a) Special Tax.--
            (1) Tax imposed.--Subchapter A of chapter 1 of the Internal 
        Revenue Code of 1986 is amended by adding at the end the 
        following new part:

           ``PART VIII--TAX ON GENETIC ENGINEERING BUSINESSES

                              ``Sec. 59B. Imposition of tax.

``SEC. 59B. IMPOSITION OF TAX.

    ``(a) Tax Imposed.--In the case of a corporation, there is hereby 
imposed (in addition to any other tax imposed by this subtitle) a tax 
equal to 1 percent of the gross income of such business for the taxable 
year which is attributable (directly or indirectly) to--
            ``(1) the marketing in the United States of any genetically 
        engineered organism, or
            ``(2) the holding of a patent on any such an organism.
    ``(b) Definition.--In this section, the term `genetically 
engineered organism' means--
            ``(1) an organism that has been altered at the molecular or 
        cellular level by means that are not possible under natural 
        conditions or processes (including but not limited to 
        recombinant DNA and RNA techniques, cell fusion, 
        microencapsulation, macroencapsulation, gene deletion and 
        doubling, introducing a foreign gene, and changing the 
        positions of genes), other than a means consisting exclusively 
        of breeding, conjugation, fermentation, hybridization, in vitro 
        fertilization, tissue culture, or mutagenesis; and
            ``(2) an organism made through sexual or asexual 
        reproduction (or both) involving an organism described in 
        subparagraph (A), if possessing any of the altered molecular or 
        cellular characteristics of the organism so described.''
            (2) Clerical amendment.--The table of parts for such 
        subchapter A is amended by adding at the end the following new 
        item:

                              ``Part VIII. Tax on genetic engineering 
                                        businesses.''
            (3) Effective Date.--The amendments made by this subsection 
        shall apply to taxable years beginning after the date of the 
        enactment of this Act.
    (b) Sustainable Agriculture Trust Fund.--
            (1) Creation and funding source.--Subchapter A of chapter 
        98 of the Internal Revenue Code of 1986 (relating to trust fund 
        code) is amended by adding at the end the following new 
        section:

``SEC. 9511. SUSTAINABLE AGRICULTURE TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Sustainable 
Agriculture Trust Fund', consisting of such amounts as may be 
appropriated or credited to the Sustainable Agriculture Trust Fund as 
provided in this section or section 9602(b).
    ``(b) Transfer to Trust Fund of Certain Taxes.--There is hereby 
appropriated to the Sustainable Agriculture Trust Fund amounts 
equivalent to the taxes received in the Treasury under section 59B.
    ``(c) Expenditures From Trust Fund.--Amounts in the Sustainable 
Agriculture Trust Fund shall be available, as provided in appropriation 
Acts, only for grants under sections 3 and 4 of the Real Solutions to 
World Hunger Act of 2002.''.
            (2) Clerical amendment.--The table of sections for such 
        subchapter A is amended by adding at the end the following new 
        item:

                              ``Sec. 9511. Sustainable Agriculture 
                                        Trust Fund.''