Tennessee Senate Bill SB1421

Tennessee 2025-2026 Regular Session

• Introduced: 2/6/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 20; Title 29 and Title 47, Chapter 18, relative to data security.

Summary

SB1421 creates a new Tennessee data security framework that defines key terms such as covered entity, personal information, personal health information, restricted information, and data breach. The bill applies to businesses that access, store, process, or communicate protected data and sets out when a breach is considered to have occurred, while excluding certain disclosures made under legal process or good-faith transmissions that are not further misused. The bill’s central feature is an affirmative defense for covered entities in tort actions if they maintain and comply with a written cybersecurity program that includes administrative, technical, operational, and physical safeguards. That program must be designed to protect protected data, assess and mitigate threats, train employees, and designate a security officer, and it must reasonably conform to recognized cybersecurity frameworks such as NIST standards, HIPAA security rules, GLBA, FISMA, HITECH, PCI DSS, or similar state or federal requirements. The bill also requires timely mitigation and notification when a known threat exists, and it expressly states that it does not create a private right of action or class action.

Impact

If enacted, the bill would add a new part to Tennessee Code Annotated Title 47, Chapter 18, creating a statutory safe harbor for businesses that can show cybersecurity compliance after a data breach. It would affect businesses handling personal, health, or sensitive information by encouraging adoption of formal cybersecurity programs and recognized security frameworks, while limiting tort exposure for entities that meet the bill’s standards. The measure would not itself create new consumer claims; instead, it would shape defenses available in state court litigation involving data breaches.

Sentiment

No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or formal support/opposition in the available record. Based on the bill text, the measure appears to be framed as a business-friendly cybersecurity compliance bill that also seeks to protect consumers by encouraging stronger data safeguards and breach response practices. The overall tone is regulatory and risk-management oriented rather than punitive.

Contention

The likely point of contention is the balance between encouraging cybersecurity compliance and limiting liability. Businesses may support the affirmative defense and reliance on established frameworks because it provides clearer standards and reduces litigation risk, while consumer advocates may be concerned that the bill narrows remedies after a breach by shielding compliant entities from tort claims. Another possible issue is whether the bill’s reliance on broad industry standards and the absence of a private right of action provide sufficient protection for individuals whose data is compromised.