The foundation today made a submission to Parliament's local government and environment committee on legislation that seeks to ban public soliciting for sex in south Auckland.
The Manukau City Council (Control of Street Prostitution) Bill would give police the power to arrest offenders.
Aids Foundation acting director Te Herekiekie Herewini said the bill risked re-creating a criminal underground and discouraging the carrying and use of condoms.
The foundation was concerned that the law would create an environment where carrying sexual lubricant and condoms was seen as evidence of intent to commit a crime.
"The very nature of criminalising a profession prevents its regulation, including the right and legal requirement, for health protection in employment for sex workers and their clients," the foundation's written submission said.
The law could particularly affect transgender prostitutes who were over-represented in street work.
The submission said the council and central government should instead focus on finding street workers alternative work.
The bill is sponsored by Labour MP George Hawkins, who has said soliciting in Manukau was making people feel uncomfortable and unsafe.
"It encourages gangs and criminal behaviour, illicit drugs and substance abuse and intimidating behaviour," he said at the bill's first reading last year.
"What really annoys people is that it has a huge impact on the community – condoms are left in school grounds and in shop doorways. This isn't a fair go."
Mr Hawkins said Manukau was a young city with 40 per cent of its population under 25.
In June 2003 police established there were 326 sex workers in the Counties Manukau area and 150 of them were street workers.
