Rep. Ben Cline Discusses the 'Don't Sell My DNA Act' and Bankruptcy Law

Small Business Reorganization Act

• 🏛️ Judge Black highlighted the benefits of the Small Business Reorganization Act of 2019, noting its positive impact on both debtors and creditors.
• 📈 He suggested that making the $7.5 million cap permanent would allow more small businesses nationwide to be eligible for this act.
• ⏱️ The Act facilitates faster case confirmations and reduces conflict compared to traditional Chapter 11 bankruptcies, partly due to the presence of a Subchapter 5 trustee.
• ⚖️ The expedited process, requiring a plan within 90 days, leads to higher confirmation rates and is less expensive for small businesses.

The 'Don't Sell My DNA Act'

• 🧬 Rep. Ben Cline introduced the Don't Sell My DNA Act to address the unique challenges posed by genetic data in bankruptcy proceedings.
• 📜 The bill aims to amend the bankruptcy code to classify genetic information as personally identifiable information, requiring written affirmative consent before it can be sold or transferred.
• 🗑️ It also mandates the secured deletion of unsold genetic data.
• 🔒 This legislation responds to recent bankruptcies, like 23andMe's, recognizing that genetic data is uniquely identifying and permanent.

Privacy Claims in Bankruptcy

• ❓ Professor Jacobe explained that victims of data breaches, such as the 23andMe incident, are treated as general creditors in bankruptcy.
• 📉 Breach claimants must wait for proceeds after higher-priority creditors are paid, impacting their recovery.
• ⚖️ There is a need to clarify that applicable non-bankruptcy law must apply within the bankruptcy context to protect consumers.
• 🌐 Broader federal-level protections are necessary to account for reputational and identity-related damages, especially given their long-term consequences for consumers.