William H. WANLESS, Appellant, v. Eric K. SHINSEKI, Secretary of Veterans Affairs, Appellee.
No. 07-1501.
United States Court of Appeals for Veterans Claims.
Sept. 18, 2009.
23 Vet. App. 143
GREENE, Chief Judge, and MOORMAN and DAVIS, Judges. DAVIS, Judge:
D. Motion for Reconsideration
In his brief, Mr. McBurney also included a one-sentence argument pertaining to the alleged failure of the Board Chairman to address reasons for denying Mr. McBurney‘s motion for reconsideration of the Board decision: “In failing to include reasons why McBurney‘s Motion for Reconsideration allegations (regarding stipulations and sua sponte rulings) were deemed insufficient, the B[oard] violated
In this case, the Board Chairman denied reconsideration of the Board decision. To the extent the Court has jurisdiction over a Chairman‘s denial of reconsideration, it is limited to denial of a motion for reconsideration alleging new evidence or changed circumstances. Compare Romero v. Brown, 6 Vet.App. 410, 412-13 (1994) (“[W]hether this Court may review the Chairman‘s denial of reconsideration depends on the basis for the appellant‘s motion for reconsideration.” (citing Patterson v. Brown, 5 Vet.App 362 (1993))), with Mayer v. Brown, 37 F.3d 618, 619-20 (Fed.Cir.1994) (holding that the Court‘s “jurisdiction is limited by statute to review of ‘decisions of the Board of Veterans’ Appeals.’ ... An action by the Chairman is not a decision of the [B]oard.... [
III. CONCLUSION
Upon consideration of the foregoing, the Court AFFIRMS the Board‘s July 17, 2008, decision.
Robert K. Kry, of Washington, D.C., was on the brief for the appellant.
Paul J. Hutter, General Counsel; R. Randall Campbell, Assistant General Counsel; Edward V. Cassidy, Jr., Deputy Assistant General Counsel; and Yvette R. White, all of Washington, D.C., were on the brief for the appellee.
Before GREENE, Chief Judge, and MOORMAN and DAVIS, Judges.
DAVIS, Judge:
U.S. Army veteran William H. Wanless appeals a December 8, 2006, Board of Veterans’ Appeals (Board) decision that denied him payment of full disability compensation during his period of incarceration in
I. BACKGROUND
Mr. Wanless served on active duty in the U.S. Army from September 1979 to November 1981. Subsequently, VA granted him service-connection compensation for enucleation of the right eye, chronic lumbar strain with degenerative disc disease, tinnitus, high-frequency hearing loss, and residuals of a cervical strain.
In late January 1993, VA received a copy of a January 15, 1993, “Judgment and Sentence” rendered by the Payne County, Oklahoma, District Court, which found Mr. Wanless guilty of a felony and sentenced him to incarceration in a penitentiary for life without parole. In February 1993, VA informed Mr. Wanless that because of his felony conviction and subsequent incarceration,
In March 1999, Mr. Wanless requested from VA his full VA disability compensation. He advised that he had been transferred from a State-operated prison to a privately operated prison run by a for-profit company, Corrections Corporation of America (CCA).2 Mr. Wanless contended that because his incarceration was not at a State-run prison as defined by
In response to the Court remand, in June 2005 the Board sought a VA General Counsel opinion on whether a privately owned and operated correctional facility, under a contract with a State to provide correctional facilities including the physical custody and daily operational control of inmates, constitutes a Federal, State, or local penal institution under section 5313. In August 2006, the VA General Counsel issued an opinion titled “Incarceration in a Privately Owned and Operated Correction
Because a private corporation‘s authority to confine prisoners under a contract with a State agency derives completely from the State‘s inherent authority to incarcerate persons through its operation of a criminal justice system, incarceration in a facility owned and operated by a corporation, pursuant to a contract between the corporation and the State department of corrections, is tantamount to incarceration in a State penal institution within the meaning of section 5313(a)(1).
VA Gen. Coun. Prec. 5-2006 (Aug. 11, 2006) [hereinafter G.C. Prec. 5-2006]. The opinion thus concluded that the reduction of benefits provision of section 5313 applies to those incarcerated for a felony conviction in a privately operated facility contracted by the State. Id. On December 8, 2006, the Board, relying on that General Counsel opinion, found that Mr. Wanless was “shown to be presently incarcerated in a State penal institution for VA purposes under the felony conviction sentence imposed in January 1993.” R. at 8. The Board thus concluded that, under section 5313, Mr. Wanless was not entitled to payment of full disability compensation. This appeal followed.
II. LAW AND ANALYSIS
Until it was amended effective December 22, 2006, section 5313 stated:
(a)(1) To the extent provided in subsection (d) of this section, any person who is entitled to compensation or to dependency and indemnity compensation [(DIC)] and who is incarcerated in
a Federal, State, or local penal institution for a period in excess of sixty days for conviction of a felony shall not be paid such compensation or [DIC], for the period beginning on the sixty-first day of such incarceration and ending on the day such incarceration ends, in an amount that exceeds— (A) in the case of a veteran with a service-connected disability rated at 20 percent or more, the rate of compensation payable under section 1114(a) of this title; ...
....
(d) The provisions of subsection (a) of this section shall apply (1) with respect to any period of incarceration of a person for conviction of a felony committed after October 7, 1980, and (2) with respect to any period of incarceration on or after October 1, 1980, for conviction of a felony of a person who on October 1, 1980, is incarcerated for conviction of such felony and with respect to whom the action granting an award of compensation or [DIC] is taken on or after such date.
Mr. Wanless argues that his benefits should not be reduced for the period he was held in a prison operated by a private company under contract with the State of Oklahoma because a privately operated prison cannot be considered a “Federal, State, or local” institution as required under section 5313. He contends that his benefits should thus be restored for the period he was imprisoned in the private CCA facility. The Secretary maintains that, based on the August 2006 VA General Counsel opinion and congressional intent, section 5313 should be interpreted to mean that incarceration in a state-contracted, privately operated prison facility resulting from a felony conviction makes a veteran ineligible to receive full disability compensation.
The question before the Court is whether the Board was correct in concluding that Mr. Wanless‘s benefits were subject to reduction under section 5313 because of his felony conviction and subsequent incarceration in the State-contracted prison. The Court‘s inquiry into the proper interpretation of section 5313 is a question of law, and the Court reviews the Board‘s interpretation of the law de novo. See Butts v. Brown, 5 Vet.App. 532, 539 (1993) (en banc); see also Hensley v. West, 212 F.3d 1255, 1262-64 (Fed.Cir.2000) (discussing proper application of de novo review).
A. Statutory Interpretation
1. Plain Language
““Statutory interpretation begins with the language of the statute, the plain meaning of which we derive from its text and its structure.“” Myore v. Nicholson, 489 F.3d 1207, 1211 (Fed.Cir.2007) (quoting McEntee v. MSPB, 404 F.3d 1320, 1328 (Fed.Cir.2005)). “In evaluating whether Congress has directly spoken to the question at issue, the starting point is to examine the language and structure of the statute itself.” Sursely v. Peake, 22 Vet.App. 21, 24 (2007); see also Good Samaritan Hosp. v. Shalala, 508 U.S. 402, 409, 113 S.Ct. 2151, 124 L.Ed.2d 368 (1993). “[E]ach part or section [of a statute] should be construed in connection with every other part or section so as to produce a harmonious whole.” Meeks v. West, 12 Vet.App. 352, 354 (1999) (quoting
The plain language of section 5313 does not explicitly include or exclude private prisons under State contract from the list of incarceration facilities.
2. Statutory Content
In reviewing the Board‘s interpretation of section 5313, we must consider the standard meaning of words. “Without standard word meanings and rules of construction, neither Congress nor the Secretary can know how to write authorities in a way that conveys their intent and no practitioner or—more importantly—veteran can rely on a statute or regulation to mean what it appears to say.” Tropf v. Nicholson, 20 Vet.App. 317, 321–22 n. 1 (2006). The title of the statute specifically limits compensation provided “to persons incarcerated for conviction of a felony.”
Additionally, the Court of Civil Appeals of Oklahoma has previously concluded that although a person who had been sentenced to a term of confinement under the custody of the Department of Corrections was confined at a privately owned facility, his status as a prisoner was not altered. Washington v. Cornell Corr. Inc., 30 P.3d 1162, 1164 (Okla.Civ.App.2001). Furthermore, there remains no dispute that pri
3. Legislative History
The legislative history of section 5313 provides significant insight into the congressional intent underlying the section 5313 provision regarding benefits reduction for veterans incarcerated for a felony. That provision was originally promulgated in 1980, see Pub.L. No. 96-385, Stat. 1528, tit. V, § 504(a) (Oct. 7, 1980) (originally under
We have read in the newspapers where we have some individuals who are serving sentences for murder and other major criminal offenses who are drawing Federal benefits. In some cases, these individuals are drawing veterans benefits. This change in current law would restrict these benefits to these individuals. This provision would provide for a saving of $3 million during the next fiscal year.
126 CONG. REC. 18,791 (1980) (statement of Rep. Montgomery). After the introduction of the final bill, Representative Montgomery, the bill‘s principal sponsor, explained:
I do not see the wisdom of providing hundreds and thousands of tax free benefits to such individuals [referring to individuals serving long sentences for the commission of felonies] when at the same time the taxpayers of this country are spending additional thousands of dollars to maintain these same individuals in penal institutions.
126 Cong. Rec. 26,118 (1980). Representative Montgomery noted that servicemen who are dishonorably discharged because of the in-service commission of a felony are barred from receiving VA benefits and that “an economic effect caused by [a service-connected] disability is not felt” by incarcerated veterans. Id.; see also
Mr. Wanless provides no support in the legislative history of section 5313 in arguing that Congress could have intended to exclude State-contracted private prisons from section 5313 and that there are legitimate reasons for the legislature to distinguish between public and private State-contracted prisons. Indeed, such contentions disregard the legislative history of the statute. Mr. Wanless argues that because the Social Security Act precludes payment to anyone confined in a “jail, prison, or other penal institution or correctional facility,” without referencing jurisdictions as section 5313 does, one should presume that Congress was making a purposeful distinction in the two statutes. See Appellant‘s Brief (Br.) at 11; see also Pub.L. No. 96-473, 94 Stat. 2263, 2265, § 5(c) (Oct. 19, 1980) (current version at
Mr. Wanless‘s argument that the December 2006 amendment to section 5313 reveals that the prior version of the statute should be interpreted as he suggests also must fail. See Appellant‘s Br. at 12. The amendment was published as a “Clarification of Correctional Facilities Covered by Certain Provisions of Law.” See Pub.L. No. 109-461 (2006) (emphasis added). The statutory language now states that VA benefits will be reduced for claimants convicted of a felony and incarcerated in a “Federal, State, local, or other penal institution or correctional facility.”
4. August 2006 VA General Counsel Opinion
The Court reviews VA‘s statutory interpretation de novo. DeBeaord v. Principi, 18 Vet.App. 357, 363 (2004). However, we recognize that opinions of the General Counsel “constitute a body of experience and informed judgment.” Osman v. Peake, 22 Vet.App. 252, 256 (2008). VA‘s interpretation of the statute is entitled to respect to the extent that it has “the power to persuade.” Skidmore v. Swift & Co., 323 U.S. 134, 140, 65 S.Ct. 161, 89 L.Ed. 124 (1944); see Gonzales v. Or., 546 U.S. 243, 257-58, 126 S.Ct. 904, 163 L.Ed.2d 748 (2006) (concluding that regulation “does little more than restate the terms of the statute itself” and discussing whether agency interpretation was a “permissible interpretation” of the statute). Here, in August 2006, the Secretary published G.C. Prec. 5-2006, which provides his interpretation, with supporting rationale, of section 5313. That August 2006 opinion concluded that a veteran‘s incarceration in a privately owned and operated correctional facility under State contract constituted incarceration as contemplated under section 5313. See G.C. Prec. 5-2006 (“Incarceration in a privately Owned and Operated Correctional Facility—
Mr. Wanless‘s argument that G.C. Prec. 5-2006 conflicts with a previous General Counsel Precedent opinion, G.C. Prec. 10-2001 (May 24, 2001), which concluded that, in some cases, VA benefits would not be reduced under section 5313 while veterans were incarcerated in foreign prisons, is misplaced. See VA Gen. Coun. Prec. 10-2001 (May 24, 2001) [hereinafter G.C. Prec. 10-2001]. Mr. Wanless fails to adequately explain how his felony conviction in a State court and subsequent imprisonment in a State-contracted, privately owned prison, located in the United States, could be a considered a “foreign prison”4 for VA benefits purposes. See Shinseki v. Sanders, 556 U.S. 396, 129 S.Ct. 1696, 1706, 173 L.Ed.2d 532 (2009) (appellant bears burden of demonstrating error on appeal); see also Hilkert v. West, 12 Vet.App. 145, 151 (1999) (en banc) (same). Further, G.C. Prec. 10-2001 made clear veterans convicted of felonies in foreign countries and imprisoned in foreign prisons are exempt from section 5313 because their incarcerations are not funded by U.S. tax dollars. G.C. Prec. 10-2001. That reasoning is consistent with the August 2006 General Counsel opinion and expressed congressional intent underlying section 5313 that, to preserve taxpayer resources, veterans who are convicted of a felony in the United States and housed in a prison
B. Board‘s Statement of Reasons or Bases
The Board is required to include in its decision a written statement of the reasons or bases for its findings and conclusions on all material issues of fact and law presented on the record; that statement must be adequate to enable an appellant to understand the precise basis for the Board‘s decision, as well as to facilitate informed review in this Court. See
Contrary to Mr. Wanless‘s argument, this does not constitute a binding instruction on remand for the Board to review certain documents. It is clear from the record that the Board substantially complied with this Court‘s remand order. See Dyment, supra. After this Court‘s September 2004 remand, the Board requested a VA General Counsel opinion on the matter. As discussed above, that opinion provided sufficient analysis and explanation for the Secretary‘s interpretation that section 5313 required the reduction of benefits to veterans convicted of a felony and imprisoned in a State-contracted, privately owned prison.5 Based on the VA General
III. CONCLUSION
On consideration of the foregoing, the Board‘s December 8, 2006, decision is AFFIRMED.
Dianne C. TATUM, Appellant, v. Eric K. SHINSEKI, Secretary of Veterans Affairs, Appellee.
No. 07-2728.
United States Court of Appeals for Veterans Claims.
Argued July 15, 2009.
Decided Sept. 28, 2009.
