HBA-NRS H.C.R. 174 77(R) BILL ANALYSIS Office of House Bill AnalysisH.C.R. 174 By: McCall Business & Industry 4/2/2001 Introduced BACKGROUND AND PURPOSE In recent years the high technology industry has become a powerful engine for economic stability and growth in Texas. High tech service and manufacturing businesses employ more than a half-million Texans, and software companies alone generate approximately $27 billion in annual wages. Unfortunately, software piracy and theft has had a significant impact on Texas' high tech industry and the state economy as a whole. More than 25 percent of the computer software used in Texas is copied illegally, and according to recent data, software piracy costs Texas an estimated 7,000 jobs, $329 million in wages, $570 million in retail sales, and $105 million in state tax revenue every year. Software piracy also exposes consumers to the threat of fraud, the risk of computer viruses, and eliminates consumers access to vital technical support. Government agencies are among the most susceptible to the effects of software piracy as they are frequently required to follow guidelines requiring that they purchase software from the lowest bidder. The software industry recently identified more than 40 federal, state, and local government agencies that have inadvertently purchased counterfeit software licenses. House Concurrent Resolution 174 condemns the practice of software piracy. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this resolution does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Concurrent Resolution 174 condemns the practice of software piracy in all its forms, including the unauthorized acquisition, reproduction, distribution, transmission, and use of computer software by Texas state agencies and recipients of state financial assistance, and supports public and private efforts to eradicate software piracy.