JOHN FERNANDEZ Palm Beach Post Staff Writer

A funny thing happened to former mayor Raul Martinez on his way to a federal penitentiary.

He decided to run again for Hialeah mayor in Tuesday's election while he appeals bribery and extortion convictions. And all voter polls show Martinez well ahead of his rivals.

Welcome to Hialeah politics, where criminal records don't mean a whole lot.

After all, Henry Milander, a political legend in Florida's fifth-largest city, was re-elected mayor after being convicted of bribery and grand larceny in 1970.

``It's hard to believe Martinez is back,'' said resident Jose Agustin. ``But, he probably is one of the better candidates and one of the lesscorrupt ones.''

Martinez, who is out on bond, enjoys the kind of popularity even Milander would envy.

Polls have shown that Martinez can beat either current mayor Julio Martinez (no relation) or councilman Salvator D'Angelo in a runoff.

In 1981, Martinez became the first Cuban-American mayor of a major U.S. city.

And throughout the next decade, he was instrumental in turning a sleepy working-class city into an industrial center, his supporters say.

Federal prosecutors painted a different picture, however.

A federal jury convicted Martinez in March 1991 of extorting $1 million and land from developers in exchange for zoning favors. He was later sentenced to 10 years in prison.

Despite this, lawsuits by Hialeah residents have failed to keep Martinez off the ballot. The courts say he is not considered a convicted felon until he has exhausted all of his appeals.

``All the surveys say that 60 to 70 percent of the people believe I should not be penalized because of this situation,'' boasts Raul Martinez .

If Martinez wins back his mayor's seat and then loses his appeal, Gov. Lawton Chiles will likely remove him from office.

A senior member of Hialeah's council would then be appointed mayor for the remainder of the four-year term.