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HB 1033

Civil Procedure - As introduced, creates an affirmative defense that may be utilized by a covered entity that is the subject of a data breach, if the covered entity’s cybersecurity program meets certain criteria at the time the breach occurs. - Amends TCA Title 20; Title 29 and Title 47, Chapter 18.

114th Regular Session (2025-2026) Introduced by Vincent Dixie

Creates legal liability shield for data-breached companies maintaining adequate cybersecurity programs, potentially reducing consumer compensation claims.

Assigned to s/c Civil Justice Subcommittee
#civilprocedure
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WeVote Research Nonpartisan
Bill Summary · HB 1033

Legislative bill overview

HB 1033 creates an affirmative defense in Tennessee law that shields companies from certain liability if they experience a data breach, provided their cybersecurity program met specific standards at the time of the breach. The bill modifies civil procedure and data protection laws across multiple Tennessee Code Annotated titles to establish criteria for what constitutes adequate cybersecurity protection.

Why is this important

Data breach liability is a major financial risk for businesses, potentially affecting insurance costs, shareholder lawsuits, and consumer confidence. This bill would reduce legal exposure for companies that maintain robust cybersecurity, potentially incentivizing stronger security practices—but it also raises questions about who bears the cost when breaches occur despite "adequate" security measures.

Potential points of contention

  • Cybersecurity standard ambiguity: The bill doesn't specify in this summary what criteria define a "certain criteria" cybersecurity program, creating uncertainty about which companies qualify for protection
  • Consumer protection concerns: Consumer advocates may argue this shifts breach liability away from companies and toward individual victims, reducing corporate accountability and compensation for affected parties
  • Insurance and cost implications: The defense could reduce litigation payouts, affecting cyber liability insurance markets and potentially increasing costs for consumers through alternative mechanisms
  • Definition disputes: Disagreement likely over what constitutes "adequate" cybersecurity—industry standards, regulatory frameworks, or something else entirely

Compiled from official sources — confirm details with the bill’s official record.

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