Tennessee House Bill HB2434

Tennessee 2023-2024 Regular Session

• Introduced: 1/30/24
• Refer: 2/1/24
• Refer: 3/12/24
• Refer: 4/9/24
• Engrossed: 4/22/24
• Enrolled: 4/30/24
• Passed: 5/21/24
• Chaptered: 5/29/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 29 and Title 47, relative to civil liability.

Impact

The enactment of HB 2434 would significantly impact the landscape of civil liability connected to cybersecurity breaches in Tennessee. By shielding private entities from class action lawsuits under certain conditions, the bill encourages entities to invest in stronger cybersecurity measures, knowing that they will not face extensive legal repercussions unless their actions demonstrate gross negligence. This proactive stance is designed to foster a more robust digital security environment, benefiting both businesses and consumers alike.

Summary

House Bill 2434 seeks to amend the Tennessee Code Annotated, specifically Title 29 and Title 47, regarding civil liability for private entities in the event of cybersecurity incidents. The bill defines key terms such as 'cybersecurity event' and 'nonpublic information,' establishing the groundwork for legal protections concerning unauthorized access to or misuse of information systems. By limiting the liability of private entities in class action lawsuits following such events, unless caused by gross negligence or willful misconduct, the bill aims to provide a clearer legal framework for businesses managing sensitive information.

Sentiment

The general sentiment surrounding HB 2434 is positive among proponents who argue that it provides necessary protections for businesses against the growing threat of cyberattacks. Supporters believe that the legislative measures will stimulate confidence in private sector technological investments. However, some critics express concerns that the bill may undermine consumer protections and accountability, making it difficult for individuals to seek redress in cases of severe data breaches that could compromise personal information.

Contention

Notable points of contention include the extent of liability that should be assigned to private entities in the event of cyber incidents. Opponents argue that the bill creates a loophole allowing businesses to evade responsibility for negligent behaviors, potentially leaving individuals vulnerable to data breaches without adequate legal recourse. Discussions in legislative committees reflect a tension between fostering a favorable business climate and safeguarding consumer rights, illustrating the complexities of cybersecurity legislation.