LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6240 NOTE PREPARED: Jan 18, 2022
BILL NUMBER: HB 1081 BILL AMENDED: Jan 13, 2022
SUBJECT: Human Trafficking.
FIRST AUTHOR: Rep. McNamara BILL STATUS: 2
nd
Reading - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: This bill has the following provisions:
"Protected Person" – It modifies the definition of "protected person" for purposes of the admission of a
statement or videotape of an individual who is less than 14 years of age at the time of the offense but less
than 18 years of age at the time of trial.
Human Trafficking Crimes – It removes the requirement that money paid for a human trafficking victim or
for an act performed by a human trafficking victim be paid to a third party. It increases the penalty if the
human trafficking victim is less than 18 years of age. It specifies that: (1) consent by the human trafficking
victim; or (2) a belief that the human trafficking victim was at least 18 years of age; is not a defense to a
prosecution.
Reporting Investigations – It requires law enforcement agencies to report human trafficking investigations
to the Attorney General within 30 days after an investigation begins.
Effective Date: July 1, 2022.
Explanation of State Expenditures: Human Trafficking Crimes – This provision should cause a minor
increase in DOC’s offender population because human trafficking is infrequently prosecuted at the state
level. [Between FY 2014 and FY 2020, 19 individuals have been convicted and sentenced for human
trafficking as the most serious crime for which the person was convicted.]
Under current law, a person commits human trafficking only if the person pays or offers to pay a third party
HB 1081 1 (another person) for an act by a human trafficking victim. As proposed, more persons could be prosecuted
for Level 5 felonies under this section if a person either offers, agrees, or actually pays either a third party
or the actual human trafficking victim for an act by the human trafficking victim.
A second provision in this bill increases the criminal penalty from a Level 5 felony to a Level 4 felony if the
human trafficking victim is younger than 18 years of age. The person charged with this offense may not use
as a legal defense that the person believed that the human trafficking victim was at least 18 years of age or
that the victim consented to the act.
State expenditures would increase if an offender is subject to a longer sentence, as shown in the following
table.
MinimumAdvisoryMaximum
Level 4 2 years 6 years 12 years
Level 5 1 years 3 years 6 years
The entire sentence for Level 4 and Level 5 felonies may be suspended and the person placed on either
probation or community corrections. If no time is suspended, the offender can receive good-time credit of
25% and educational credit time and, after adjusting for credit time, released from prison and placed on
parole. According to the Indiana Supreme Court’s Abstracts of Judgment, about 43% of those who are
convicted and sentenced for a Level 5 felony are sentenced for a prison term as compared with 62% of those
convicted and sentenced for a Level 4 felony.
Reporting Investigations – Under current law, the Office of the Attorney General has the power to assist law
enforcement agencies in the investigation and prosecution of an alleged violations of human trafficking.
Additional Information – Longer sentences increase the DOC population which increases costs to DOC. The
average expenditure to house an adult offender was $24,506 annually, or $67 daily, in FY 2021. (This does
not include the cost of new construction.) If offenders can be housed in existing facilities with no additional
staff, the marginal cost for medical care, food, and clothing is approximately $4,333 annually, or $11.67
daily, per prisoner. These marginal cost estimates are based on contractual agreements with food and medical
vendors and projections based on prior years for clothing and hygiene.
The estimated average cost of housing a juvenile in a state juvenile facility was $133,799, or $366.32 daily,
in FY 2021. The marginal cost for juvenile facilities was $4,891 annually or $13.40 daily
Explanation of State Revenues: There would be no change in state revenue because criminal fines and
court fees are the same for all felonies.
Explanation of Local Expenditures: "Protected Person" – Courts should be able to implement this
provision with existing resources. Under current law and practice, the courts may only provide certain
accommodations of using closed circuit televisions and video tape for testifying to victims of sex crimes,
battery, kidnapping and confinement, incest, neglect, or human trafficking who are younger than 14 at the
time of trial. This provision would allow victims who were younger than 14 at the time of the crime and now
younger than 18 at the time of trial to have these same accommodations.
HB 1081 2 Human Trafficking Crimes – Individuals who have been charged with, convicted, and sentenced for a Level
4 felony will generally be held in a county jail prior to trial for a longer period of time than those who are
convicted and sentenced for a Level 5 felony. The average cost per day is approximately $54 based on the
per diem payments reported by U.S. Marshals to house federal prisoners in 16 county jails across Indiana
during federal FY 2017.
Reporting Investigations – Law enforcement agencies should be able to prepare these reports with existing
resources.
Explanation of Local Revenues: There would be no change in revenues because court fees are the same
for all felonies.
State Agencies Affected: Department of Correction; Office of the Attorney General.
Local Agencies Affected: Trial courts, local law enforcement agencies.
Information Sources: U.S. Department of Justice Marshals Service; Department of Correction; Abstracts
of Judgment, Indiana Supreme Court; Indiana Chapter of National Children’s Alliance
https://incacs.org/find-cac/
Fiscal Analyst: Mark Goodpaster, 317-232-9852.
HB 1081 3