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Adds legal protections for people’s genetic information in bankruptcy cases by treating genetic data as a protected category of personal information. It requires that a person receive actual prior written notice before their genetic information held in a bankruptcy estate may be used, sold, or leased, and it requires trustees or debtors in possession to delete genetic information from the estate if it is not transferred or sold under ordinary bankruptcy disposition procedures. The rules take effect on enactment and apply to cases pending on that date and to cases opened or reopened afterward.
Add a new clause (vii) to section 101(41A)(A) of Title 11 that explicitly includes "genetic information," defined by section 201 of the Genetic Information Nondiscrimination Act of 2008 (42 U.S.C. 2000ff), in the listed items.
Replace clause (ii) of 11 U.S.C. §363(b)(1)(B) with text requiring a court finding that no showing was made that a proposed sale or lease would violate applicable nonbankruptcy law.
Add new 11 U.S.C. §363(q): Any use, sale, or lease of genetic information (as defined in GINA §201) from the bankruptcy estate shall not be considered final and valid unless each person whose genetic information would be subject to the use, sale, or lease is provided with actual prior written notice of such use, sale, or lease.
Add new 11 U.S.C. §1107(c): A trustee or debtor in possession must delete any genetic information that was property of the estate and that was not sold, leased, or otherwise disposed of under section 363, using methods proscribed by the court (which may include NIST Special Publication 800–88 or its successor).
The amendments take effect on the date of enactment of the Act.
Who is affected and how:
Individuals whose genetic information appears among a debtor’s assets: They gain explicit statutory privacy protections in bankruptcy settings, including prior written notice before any sale/use and a right (practical) to have data deleted if not transferred through the estate.
Bankruptcy trustees and debtors in possession: They must identify genetic information in estates, provide actual prior written notice to affected individuals before any permitted transfer or use, and implement processes to delete genetic data that are not disposed of. That adds administrative burdens, recordkeeping and potentially legal risk if obligations are not met.
Creditors and purchasers of estate assets (including data brokers, researchers, and businesses): Their ability to acquire or monetize genetic information from bankruptcy estates will be constrained by the notice requirement and deletion rule; some transactions may be blocked or require additional compliance steps.
Data brokers, genetic testing companies, and secondary-market buyers: May see reduced supply of genetic datasets sourced from bankruptcy estates and will need to verify compliance with notice/deletion requirements before acquiring estate-held genetic information.
Courts and bankruptcy administrators: May see litigation or contested proceedings over whether particular information qualifies as genetic information, whether notice was adequate, and whether deletion obligations were satisfied; judges will interpret and apply the new statutory protections in estate administration.
Overall effect:
Modifies the enumerated clauses in section 101(41A)(A) by adding a new clause that expressly lists 'genetic information' (as defined in 42 U.S.C. 2000ff) as an item in that provision.
Revises subsection (b)(1)(B)(ii) to the quoted language requiring a finding that no showing was made that a sale or lease would violate applicable nonbankruptcy law, and adds a new subsection (q) requiring actual prior written notice to each person whose genetic information would be subject to any use, sale, or lease.
Adds a new subsection (c) to section 1107 requiring a trustee or debtor in possession to delete genetic information that was property of the estate and not subject to disposition under section 363, using methods proscribed by the court (which may include NIST SP 800-88 or successor guidance).
Expand sections to see detailed analysis
Read twice and referred to the Committee on the Judiciary.
Introduced May 22, 2025 by John Cornyn · Last progress May 22, 2025
Read twice and referred to the Committee on the Judiciary.
Introduced in Senate