Tennessee

Tenn. Code § 47-18-2107

H.B. 2170 (signed into law June 8, 2005, Chapter 473)

Effective July 1, 2005

Application. Any person or business that conducts business in TN, or any agency of TN or any of its political subdivisions (collectively, Entity), that owns or licenses computerized data that includes PI.

The provisions governing maintenance of PI that the Entity does not own appear applicable to any Entity maintaining PI, whether or not the Entity conducts business in TN.

Security Breach Definition. Unauthorized acquisition of unencrypted computerized data that materially compromises the security, confidentiality, or integrity of PI maintained by the Entity.

Good-faith acquisition of PI by an employee or agent of the Entity for the purposes of the Entity is not a breach of the security of the system, provided that the PI is not used or subject to further unauthorized disclosure.

Notification Obligation. Any Entity to which the statute applies shall disclose any breach of the security of the system, following discovery or notification of the breach in the security of the data, to any resident of TN whose unencrypted PI was, or is reasonably believed to have been, acquired by an unauthorized person.

Notification to Consumer Reporting Agencies. If an Entity is required to notify more than 1,000 persons at one time, the person shall also notify, without unreasonable delay, all consumer reporting agencies and credit bureaus that compile and maintain files on consumers on a nationwide basis of the timing, distribution and content of the notices.

Third-Party Data Notification. Any Entity that maintains computerized data that includes PI that the Entity does not own shall notify the owner or licensee of the information of any breach of the security of the data immediately following discovery, if the PI was, or is reasonably believed to have been, acquired by an unauthorized person.

Timing of Notification. The disclosure shall be made in the most expedient time possible and without unreasonable delay, consistent with the legitimate needs of law enforcement or any measures necessary to determine the scope of the breach and restore the reasonable integrity of the data system.

Personal Information Definition. An individual’s first name or first initial and last name, in combination with any one or more of the following data elements, when either the name or the data elements are not encrypted:

Social Security Number;
Driver license number; or
Account number or credit card number or debit card number in combination with any required security code, access code, or password that would permit access to an individual’s financial account.

PI does not include publicly available information that is lawfully made available to the general public from federal, state, or local government records.

Notice Required. Notice may be provided by one of the following methods:

Written notice; or
Electronic notice, if the notice provided is consistent with the provisions regarding electronic records and signatures set forth in 15 U.S.C. § 7001 (E-SIGN Act).

Substitute Notice Available. If the Entity demonstrates that the cost of providing notice would exceed $250,000, or that the affected class of subject persons to be notified exceeds 500,000, or the Entity does not have sufficient contact information. Substitute notice shall consist of all of the following:

Email notice when the Entity has an email address for the subject persons;
Conspicuous posting of the notice on the Entity’s Web site if the Entity maintains one; and
Notification to major statewide media.

Exception: Own Notification Policy. An Entity that maintains its own notification procedures as part of an information security policy for the treatment of PI and is otherwise consistent with the timing requirements of the statute shall be deemed to be in compliance with the notification requirements of the statute if it notifies subject persons in accordance with its policies in the event of a breach of security of the system.

Exception: Compliance with Other Laws.

The provisions of this statute shall not apply to any Entity that is subject to the provisions of Title V of the Gramm-Leach-Bliley Act.

Other Key Provisions:

Delay for Law Enforcement. The notification required may be delayed if a law enforcement agency determines that the notification will impede a criminal investigation. The required notification shall be made after the law enforcement agency determines that it will not compromise the investigation.
Private Right of Action.