SIOUX FALLS, S.D. (KELO) — Kameron Nelson won’t be the new executive director of Lost&Found, the non-profit said Thursday. Lost&Found provides programs, training, and services to prevent youth and young adult suicide, according to its website.
Nelson is the Democrat Representative from District 10. A specific vote in the Legislature in 2023 could be interpreted as a possible conflict of interest between Nelson’ role as a legislator and as Lost&Found’s executive director, according to Eric Muckey, the founder and executive director of the non-profit.
In 2023, the state Legislature voted to appropriate money to non-profits including Lost&Found, Muckey said. The money was used for programs, he said.
“It had no bearing on the executive director’s compensation,” Muckey said.
Still, they had questions about a possible conflict of interest, Muckey said.
Lost&Found consulted its lawyer, Nelson consulted his and they both sought an opinion from the state Attorney General.
“There is a lot of gray area,” Muckey said.
The Attorney General did not give a formal opinion but did say, it’s possible Nelson’s position as a lawmaker and the non-profit executive director could be challenged in court, Muckey said.
In the end, Nelson and Lost&Found concluded it would be best for Nelson not to take on the role. Nelson wanted to make sure he maintained public trust and transparency and ethical standards, Muckey said.
“It’s an unfortunate setback,” Muckey said of the loss of Nelson in the role.
Potential conflict of interest with lawmakers has been discussed for more than a year in the state.
Gov. Kristi Noem in August of 2023, issued an executive order 2023-13 to guard against conflicts of interest in state government.
Potential conflict was raised again when Noem requested in January an advisory opinion from the South Dakota Supreme Court when she needed to fill to vacant legislative seats.
The South Dakota Supreme Court issued the lawmaker advisory opinion in February on conflict of interest. The opinion focused on Article III, Section 12 of South Dakota law.
“Our answer to the Governor’s restated question whether Article III, (Section) 12 prohibits all contracts between legislators and the State is: No, it does not,” Justice Mark Salter wrote in the advisory opinion.
“I think more clarification is needed,” Muckey said. Clarification is particularly needed on the definition of what is an indirect benefit of an appropriation to a non-profit or local government, he said.
It is a challenge for non-profits or any government entity to interpret potential conflicts of interest now, Muckey said.
He’s not sure if the Legislature would solve that or a lawsuit, Muckey said.
Still, he said, state officials and others are interested in abiding by the law, “which is a good thing,” Muckey said.
Muckey said he did get a clear legal go-ahead to continue as the Lost&Found executive director as he runs for the District 15 Representative seat. Muckey said was not a member of the Legislature in 2023 he would not be in a conflict of interest if he won the election.
However, how long he serves as executive director is still to be determined, Muckey said. The nonprofit’s board has a role in that decision, he said.
