Who Is Covered?
“Information holder” means any person or business that conducts business in Tennessee, or any agency of this state or any of its political subdivisions, that owns or licenses computerized personal information of residents of this state. Tenn. Code Ann. § 47-18-2107(a)(3).
What Information Is Protected?
“Personal information” means an individual’s first name or first initial and last name, in combination with any one (1) or more of the following data elements:
- Social security number;
- Driver license number; or
- Account, credit card, 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. Tenn. Code Ann. § 47-18-2107(a)(4).
What Is A Breach?
“Breach of system security” means the acquisition of the following information by an unauthorized person that materially compromises the security, confidentiality, or integrity of personal information maintained by the information holder:
- Unencrypted computerized data; or
- Encrypted computerized data and the encryption key. Tenn. Code Ann. § 47-18-2107(a)(1).
What Triggers Notification?
Discovery or notification of a breach of system security by an information holder where the personal information was, or is reasonably believed to have been, acquired by an unauthorized person. Tenn. Code Ann. § 47-18-2107(b).
How Is Notice Provided To Individuals?
Timing: The disclosure must be made no later than forty-five (45) days from the discovery or notification of the breach of system security, unless a longer period of time is required due to the legitimate needs of law enforcement. Tenn. Code Ann. § 47-18-2107(b).
Delivery: Notification may be by:
- Written notice;
- Electronic notice, if the notice provided is consistent with the provisions regarding electronic records and signatures set forth in 15 U.S.C. § 7001 or if the information holder’s primary method of communication with the resident of this state has been by electronic means; or
- Substitute notice, if the information holder demonstrates that the cost of providing notice would exceed two hundred fifty thousand dollars ($250,000), that the affected class of subject persons to be notified exceeds five hundred thousand (500,000) persons, or the information holder does not have sufficient contact information and the notice consists of all of the following: (A) Email notice, when the information holder has an email address for the subject persons; (B) Conspicuous posting of the notice on the information holder’s website, if the information holder maintains a website page; and (C) Notification to major statewide media. Tenn. Code Ann. § 47-18-2107(e).
Content: None specified.
Is Notice To The Government Required?
No.
Is Notice To Credit Reporting Agencies Required?
Yes. If an information holder discovers circumstances requiring notification pursuant to this section of more than 1,000 persons at one time, the information holder must 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. Tenn. Code Ann. § 47-18-2107(g).
Are There Security Measure Standards?
No.
What Are The Possible Consequences Of A Violation?
Any customer of an information holder who is a person or business entity, but who is not an agency of this state or any political subdivision of this state, and who is injured by a violation of this section, may institute a civil action to recover damages and to enjoin the information holder from further action in violation of this section. The rights and remedies available under this section are cumulative to each other and to any other rights and remedies available under law. Tenn. Code Ann. § 47-18-2107(h).
Additionally, in addition to injunctive relief and attorney fees, the attorney general may seek a civil penalty of whichever of the following is greater: a) $10,000; b) $5,000 per day for each day that a person’s identity has been assumed; or c) 10 times the amount obtained or attempted to be obtained by the person using the identity theft. Tenn. Code Ann. § 47-18-2105.
Are There Any Exemptions/Exceptions?
If an information holder maintains its own notification procedures as part of an information security policy for the treatment of personal information and if the policy is otherwise consistent with the timing requirements of this section, the information holder is in compliance with the notification requirements of this section, as long as the information holder notifies subject persons in accordance with its policies in the event of a breach of system security. Tenn. Code Ann. § 47-18-2107(f).
Additionally, the requirements do not apply to any information holder subject to:
- Title V of the Gramm-Leach-Bliley Act; or
- The Health Insurance Portability and Accountability Act. Tenn. Code Ann. § 47-18-2107(i).