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.