Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR
Reps. Thomson and Matthews/Sens.
Chavez and Sedillo Lopez
LAST UPDATED
ORIGINAL DATE 2/3/25
SHORT TITLE Human Trafficking Changes
BILL
NUMBER House Bill 86
ANALYST Sanchez
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
LOPD
No fiscal
impact
At least $290.0 At least $290.0
At least
$580.0
Recurring General Fund
NMCD
No fiscal
impact
At least $28.2 At least $28.2 At least $56.4 Recurring General Fund
Total
No fiscal
impact
At least $318.2 At least $318.2
At least
$636.4
Recurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Duplicates Senate Bill 74
Sources of Information
LFC Files
Agency Analysis Received From
Administrative Office of the Courts (AODA) Law Offices of the Public Defender (LOPD) New Mexico Sentencing Commission (NMSC) Healthcare Authority (HCA) Department of Health (DOH) Children, Youth and Families Department (CYFD) Crime Victims Reparation Commission (CVRC) Department of Public Safety (DPS)
SUMMARY
Synopsis of House Bill 86
House Bill 86 (HB86) proposes several significant amendments to New Mexico’s criminal
statutes concerning human trafficking and the sexual exploitation of children. The bill eliminates
the statute of limitations for prosecuting human trafficking offenses under Section 30-1-8 NMSA
1978. HB86 also raises the age threshold for the crime of sexual exploitation of children by
prostitution from 16 to 18 years under Section 30-6A-4 NMSA 1978. It specifies that it is not a
defense if the victim was a law enforcement officer posing as a minor. HB86 expands the scope House Bill 86 – Page 2
of human trafficking under Section 30-52-1 NMSA 1978 by including harboring, maintaining,
patronizing, and providing individuals for labor, services, or commercial sexual activity. It also
removes the requirement that a trafficker have actual knowledge of coercion, replacing it with a
"knew or should have known" standard.
HB86 adds human trafficking to the definition of "racketeering" under Section 30-42-3 NMSA
1978 and subjects convicted traffickers to asset forfeiture under the Forfeiture Act. Furthermore,
it prohibits human trafficking victims from being charged with prostitution, expands the
definition of "coercion" to include physical restraint, and defines "harm" broadly to include
physical, psychological, and financial harm. HB86 also amends the Victims of Crime Act in
Section 31-26-3 NMSA 1978 to include victims of human trafficking and sexual exploitation of
children. It classifies human trafficking as a serious violent offense under Section 33-2-34
NMSA 1978, thereby limiting earned meritorious deductions (commonly known as “good time
credit”) for offenders.
This bill does not contain an effective date and, as a result, would go into effect 90 days after the
Legislature adjourns if enacted, or June 20, 2025.
FISCAL IMPLICATIONS
Incarceration drives costs in the criminal justice system, so the primary fiscal implications
examined in this analysis relate to changes in the number of individuals in prison and the length
of time served in prison that might result from this bill. The creation of any new crime, increase
of felony degree, or increase of sentencing penalties will likely increase the population of New
Mexico’s prisons and long-term costs to the general fund. In addition to the potential of new
crimes to send more individuals to prison, increased sentence lengths decrease releases relative
to the rate of admissions, pushing the overall prison population higher. NMCD reported the
average cost to incarcerate a single inmate in FY24 was $56.7 thousand; however, due to the
high fixed costs of the state’s prison facilities and administrative overhead, LFC estimates a
marginal cost (the cost per each additional inmate) of $28.2 thousand per year across all
facilities. HB86 is anticipated to increase the time individuals spend incarcerated for this crime.
This bill will likely increase the number of individuals incarcerated and increase the time they
spend incarcerated
The Law Offices of the Public Defender (LOPD) anticipate an increased caseload due to the
expanded scope of human trafficking crimes and heightened penalties. LOPD estimates that
hiring experienced attorneys to handle these complex cases costs approximately $291 thousand
per year in the Albuquerque/Santa Fe areas and $299.6 thousand per year in outlying areas.
Given New Mexico’s existing shortage of public defenders, an increase in serious felony cases
requiring legal representation could exacerbate existing workload challenges.
Additionally, the judiciary anticipates increased trial rates, as higher penalties often discourage
plea deals. More jury trials will result in additional costs for judges, courtroom staff, and jury
fees. However, a precise estimate of the total increased judicial costs remains undetermined.
The Department of Public Safety (DPS) supports the bill, noting it will provide additional legal
tools to combat human trafficking. However, enforcement of new forfeiture provisions under the
Forfeiture Act could impose administrative costs on state agencies involved in asset seizure and
processing. These costs are not explicitly quantified but should be considered. House Bill 86 – Page 3
The Children, Youth, and Families Department (CYFD) highlights that HB 86 expands
protections for victims of human trafficking and sexual exploitation of children, which may
increase demand for safe house programs and behavioral health services. CYFD currently
operates the Domestic Minor Sex Trafficking (DMST) Safe House Program, expected to launch
in spring of FY25, which will provide 24/7 trauma-responsive services for trafficking victims
aged 14-18. While CYFD does not anticipate direct fiscal impacts, the expansion of statutory
protections may increase the number of children eligible for state-funded services.
SIGNIFICANT ISSUES
HB86 significantly expands the definition of human trafficking under Section 30-52-1 NMSA
1978, adding harboring, maintaining, patronizing, and providing individuals for labor, services,
or commercial sexual activity. It also lowers the burden of proof by replacing the requirement for
actual knowledge with a "should have known" standard, which could increase the number of
prosecutions but may raise due process concerns for individuals who are only indirectly
involved. The bill eliminates the statute of limitations for human trafficking, aligning New
Mexico with federal law. Increased penalties could also have broader implications, as the bill
raises trafficking of minors under 18 to a first-degree felony with a mandatory sentence of 12 to
18 years and trafficking of adults to a second-degree felony, potentially contributing to longer
prison stays and raising concerns about proportionality in sentencing.
By adding human trafficking to the definition of racketeering under Section 30-42-3 NMSA
1978, the bill enables prosecutors to use RICO-like (racketeer-influenced and corrupt
organizations) statutes to seize assets from traffickers, which could be a powerful tool in
dismantling trafficking networks but may also raise concerns about potential misuse of forfeiture
laws. It would also prohibit victims of trafficking from being charged with prostitution,
strengthening victim protections, but the increase in the legal age for prostitution victims from 16
to 18 could create inconsistencies with New Mexico’s existing consent laws and complicate
prosecution strategies. Law enforcement officials support the bill, arguing that trafficking
penalties should be at least as severe as those for drug trafficking, but note that human trafficking
cases are difficult to investigate due to victims’ reluctance to testify. DPS points out that the
success of prosecutions will depend on victims' willingness to cooperate, and while the bill could
lead to more cases being charged, securing convictions remains a challenge.
CVRC also highlights disparities in New Mexico’s trafficking laws compared to neighboring
states, where mandatory minimum sentences are already in place, suggesting that weaker
sentencing laws could make New Mexico a more attractive location for trafficking networks. For
example, Texas imposes a mandatory minimum of two years, and Arizona sentences offenders to
4-13 years, depending on the victim's age. At the same time, research indicates that increasing
penalties alone does little to deter criminals who are often unaware of specific sentencing laws.
CYFD notes the bill’s expanded protections for child trafficking victims may lead to increased
demand for trauma-informed services, particularly as CYFD prepares to launch a new Safe
House Program for minors affected by trafficking in FY25. While CYFD has not projected
additional costs, lawmakers should consider whether the state’s victim support infrastructure is
adequately prepared to handle a potential increase in trafficking survivors seeking services.
House Bill 86 – Page 4
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
This bill duplicates Senate Bill 74, Time Limit for Prosecuting Certain Crimes.
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