FIFTY-SECOND LEGISLATURE FIRST SESSION, 2015 BEFORE THE SENATE HEARING SUBCOMMITTEE of the INTERIM LEGISLATIVE ETHICS COMMITTEE STIPULATED FACTS AND ETHICAL VIOLATIONS IN THE MATTER OF AN ETHICS COMPLAINT AGAINST SENATOR PHIL A. GRIEGO Stipulated Facts 1. Senator Phil A. Griego has been a member of the New Mexico Senate since 1997 and is currently serving a four-year term that began in 2013. 2. In the months before the Second Session of the Fifty-First Legislature convened, Senator Griego agreed to assist Galisteo Street Inc. in a proposed purchase of certain improved property owned by the State of New Mexico through the Energy, Minerals and Natural Resources Department (EMNRD), with a physical address of 139441 East DeVargas Street in Santa e, New Mexico, 87501. 3. The property is designated as a historic "contributing" property under the City of Santa Fe's historic preservation standards. It is adjacent to a hotel owned by Galisteo Street Inc. and, at all material times, was leased by Galisteo Street Inc. from the State of New Mexico. Exhibit A, Appraisal 0f139?14l East De Vargas Street, March 21 2014. 4. The lease agreement conferred upon Galisteo Street Inc. the absolute and unconditional ?rst right to purchase the property at fair market value based upon an appraisal if the EMNRD ever offered the property for sale. Exhibit B, Lease Agreement. 5. The sale of any state-owned property with a value of more than $100,000 requires legislative approval through the passage of a joint resolution. See Section 13-6-3 NMSA 1978. 6. Senator Griego initiated the legislative approval process by obtaining the agreement of a member of the house of representatives to introduce the joint resolution as House Joint Resolution 8 (HJ 8). Senator Griego monitored the progress of HJR 8 throughout the legislative process. Exhibit C, Enrolled and Engrossed Copy of HJR 8. 7. The house of representatives passed HJ 8 on February 14, 2014. Exhibit D, Journal of the House of Representatives, i?y?F irst Legislature, Second Session, page 278. 8. On February 18, 2014, with fewer than 48 hours remaining in the legislative session, the Senate Rules Committee reported favorably on 8, the resolution was withdrawn from the final committee to which it was referred and it was placed on the senate calendar for ?nal consideration. Exhibit B, Journal of the Senate, z'fty-F irst Legislature, Second Session, page 51 6. 9. When Senator Griego was recognized to present HJR 8 to the senate on February 19, 2014, he deferred to a senate colleague to present the measure. Exhibit F, Video of Senate Floor Proceedings, February 19, 2014, http://mediaJ 2. eronicus. com:443/ondemand/governor- 70 70ee4~bd9e~441a-bf6a~32a 7328c 7891. mn4? . 10. Senator Griego remained on the ?oor of the senate during the debate on HR 8, and, consistent with the requirement of Senate Rule 7~5 that a senator vote on each question "unless he has a direct personal or pecuniary interest in the question", Senator Griego exited the ?oor immediately prior to the vote and did not return to the ?oor until the vote was announced. Exhibit F. ll. Senator Griego did not publicly disclose any direct or indirect interest in the matter that was before the senate. 12. The senate approved 8. Exhibit G, Journal ofthe Senate, ifzy-F irst Legislature, Second Session, page 543. 13. On March 24, 2014, Galisteo Street Inc, as buyer, executed an agreement entitled ?Buyer's Agency Agreement" with Excalibur Asset Management LLC ?acting by and through its broker, Senator Phil Griego". Exhibit H, Buyer?s Agency Agreement. 14. The agreement provided that Senator Griego, as agent, would receive $50,000, plus gross receipts tax, for "obtaining a signed Purchase Agreement, coordinating the documentation needed for closing, and assisting Buyer in matters that may arise prior to closing". Exhibit H. 15. After the 2014 legislative session ended, Senator Griego continued to monitor the required review of the prOposed sale by the Capitol Buildings Planning Commission and did not disclose his interest in the transaction. 16. Galisteo Street Inc. paid the agreed-upon ?at fee of $50,000, plus the applicable -2- gross receipts tax, to Excalibur Asset Management LLC on or about June 26, 2014. Exhibit 1, Settlement Statement. 17, The fee equaled 8.8 percent of the ?nal purchase price, which was in excess of the customary percentage charged by real estate agents for the purchase and sale of improved property in Santa Fe, especially given the simplicity of the transaction. Acknowledgments by Senator Griego 18. Senator Griego contends that he was unaware of the prohibition in Article 4, Section 28 of the Constitution of New Mexico against a legislator having an interest in a contract with the state that was authorized by any law passed during the legislator's term. 19. Senator Griego now understands the force and effect of that constitutional prohibition and that it applied to his interest in the purchase of the property. 20. Senator Griego understands the seriousness of his conduct and willingly submits himself to the disciplinary decision of the senate. Senator Griego Wishes to make clear to the body that he has been a duly elected member of the senate for 18 years, that prior to that time he served as an elected member of the Santa Fe City Council, and, until this instance, he has never been accused of any ethical impropriety with respect to his elective duties. Stipulated Ethical Violations 21. Senator Griego's receipt of a commission from Galisteo Street Inc. following the sale of the property violated Article 4, Section 28 of the Constitution of New Mexico, which prohibits "any member of the legislature during the term for which he was elected nor within one year thereafter, be[ing] interested directly or indirectly in any contract with the state which was authorized by any law passed during such term". 22. Senator Griego violated Senate Rule 26-1, which requires him to treat his of?ce as a public trust, conduct himself in a manner that justi?es the confidence placed in him by the people and maintain the integrity and discharge ethically the high responsibilities of his of?ce. 23. Senator Griego violated the Senate Oath of Ethical Conduct in which he af?rmed that he would "ethically and with integrity discharge the high responsibilities placed upon? him, -3- "abide by the spirit as well as the letter of the senate rules pertaining to ethical conduct" and "scrupulously avoid any act of impropriety or any act that gives the appearance of impropriety". Exhibit Journal ofthe Senate, ifty?F z'rst Legislature, irst Session, page 5. 24. Senator Griego, therefore, submits himself to the discipline of the senate. Accepted by the Senate Hearing Subcommittee of the Interim Legislative Ethics Committee Linda M. Lopez, Chair March 2015