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Wednesday, February 04, 2009
Back Taxes Don't Stop Lobbyist
By Thomas J. Cole
Journal Staff Writer
A veteran lobbyist, whose company is a top delinquent state taxpayer, is back at work as lawmakers meet in Santa Fe.
Among his clients: a government agency. Pay: $25,000 a year.
Lobbyist Robert Rivera is a close friend of House Speaker Ben Luján, D-Santa Fe, and can often be found working out of Luján's office when the Legislature is in session.
Although his company is way behind in state taxes and he says it can't afford to catch up in the next five years, Rivera managed to hand out thousands of dollars of campaign cash to legislative candidates.
Robert L. Rivera PA owes more than $210,000 for past-due gross receipts taxes, according to the list of top delinquent taxpayers prepared by the state Taxation and Revenue Department.
Rivera's lobbying clients this year include the Elephant Butte Irrigation District in southern New Mexico, which was created by state law and levies taxes on property owners with water rights to pay for its operation.
Gary Esslinger, treasurer-manager of the irrigation district, said the district's board of directors learned of Rivera's tax problem from a story in the Journal in December and discussed the matter at a January meeting attended by Rivera.
The board decided to keep Rivera through the 60-day session of the Legislature, then reassess his performance once it ends in March, Esslinger said.
"The board felt like it could give him the benefit of the doubt to correct his personal issues," he said.
"Robert has done a good job for us," Esslinger added. "He felt like he could continue to perform well despite his personal problems."
The irrigation district in 2007 chose Rivera as its lobbyist for up to three years, with his contract to be renewed annually. The first renewal was last November, Esslinger said. Rivera is paid $25,000 a year, he said.
Rivera's other lobbying clients are Flicks on 66/The Studio New Mexico, New Mexico Industrial Energy Consumers, New Mexico Propane Gas Association, Ruidoso Downs Racing, Turtleback Mountain/Sierra del Rio Golf Course and the Westland development company.
Rivera and some of his clients are significant contributors to candidates for the Legislature.
Rivera alone donated $10,100 to more than 30 candidates for the House and Senate last year, according to campaign finance reports filed with the Secretary of State's Office and Rivera's lobbyist report.
Of the candidates who received money from Rivera, 26 were elected to the Legislature.
Those lawmakers don't appear to be in a rush to return the cash. Another alternative, permitted by state law, is for lawmakers to donate the money to the state's general fund.
"I'm just not going to say anything," Sen. Rod Adair, R-Roswell, said when asked whether he was comfortable with having taken $500 from Rivera.
Senate Rules Chairwoman Linda Lopez, D-Albuquerque, said she has discussed the $500 she received from Rivera with her campaign treasurer but had made no decision on what, if anything, to do about the donation.
Lopez said if she had known of Rivera's tax issue at the time of the contribution, she "probably, most likely, would have politely declined" the money.
House Judiciary Chairman Al Park, D-Albuquerque, said the failure of Rivera's company to pay its taxes was inexcusable and that he was "not very" comfortable with having taken $500 from the lobbyist.
"I pay my taxes. My company pays its taxes. Everyone should pay their taxes," Park said.
Rivera has blamed an employee for the tax problem and said he wasn't paying close attention to the business.
The lobbyist said Monday that he has an oral agreement with the Taxation and Revenue Department to make installment payments on the tax debt.
He said the department has advised him that to get off the list of top delinquent taxpayers, he needs to enter into a written agreement to pay the debt within five years. Rivera said he can't pay the money in that short of a time.
State target gives cash
An Albuquerque law firm being sued by the state in the Region III Housing Authority scandal contributed $1,000 to the campaign of a newly elected member of the House.
Rep. Jack Thomas, D-Rio Rancho, reported receiving the contribution from Hughes & Strumor in July. That was more than two months after the State Investment Council filed the lawsuit against Hughes & Strumor, attorney Robert Strumor and others.
The lawsuit alleges that Strumor, acting as a lawyer for the housing authority, misrepresented how the authority would spend money generated by bonds sold to the State Investment Council. The authority later defaulted on repayment of $5 million in bonds.
Hughes & Strumor is seeking dismissal of the lawsuit.
Thomas is a former Sandoval County commissioner, and Hughes & Strumor has done bond work for the county.
"All it (the contribution) had to do with, I think, was their faith in me" to serve in the Legislature, Thomas said.
He said he wasn't aware of the lawsuit against Hughes & Strumor at the time of the donation, despite published reports about the legal action at the time it was filed.
"I probably would have to think about that today," Thomas said. "It's entirely different circumstances."
UpFront is a daily front-page opinion column. Thom Cole can be reached in Santa Fe at (505) 992-6280 or at tcole@abqjournal.com
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