PSC takes Securus Technologies ownership transfer under advisement after objections from Office of People's Counsel and advocacy groups

The Public Service Commission on Oct. 1 took under advisement a notice from Securus Technologies LLC describing a planned transfer of ultimate ownership of its holding company and related financing arrangements after staff recommended noting the transaction but the Office of People’s Counsel and advocacy groups urged closer review.

Securus asked the commission to note financing arrangements tied to a corporate recapitalization in which ownership of the ultimate holding company (SCRS Intermediate Holding Corporation, described in filings as a Delaware entity) would transfer to a group of lenders and investors. Staff advised the commission that because the holding company does not operate in Maryland, the transaction does not trigger statutory approval requirements found in the Public Utilities Article provisions the staff cited (PUA §6101(c)(3) and §6101(c)(4) as referenced in staff’s comments), and therefore the financing and ownership changes do not require commission authorization. Staff recommended the commission note the financing/transfer as filed and treat any service practices complaints as matters for complaint proceedings rather than the financing docket.

Office of People’s Counsel argued the commission should impute the Maryland operations of Securus to the parent holding company for the purpose of the statutory test and therefore require commission authorization, because the transaction is essentially a transfer of the public‑service business to new controllers. OPC also said the applicants had not provided full public disclosure of all anticipated ultimate equity holders in non‑confidential form and urged the commission to deny the transaction without prejudice or require additional public disclosures and operational commitments.

Advocacy group Worth Rises (represented at the meeting) urged the commission to scrutinize the transfer, saying the ownership change follows a distressed period in which Securus defaulted on substantial debt and that lenders and distressed‑debt investors acquiring control could worsen service or pricing practices affecting incarcerated people and their families. Worth Rises noted prior FCC activity and litigation and said Maryland should exercise oversight over a public‑service company serving a vulnerable, captive population. Securus representatives said the transaction is a financial restructuring intended to reduce debt, preserve service continuity and that the company provided confidential information to OPC under protective treatment. Securus also said the company has no recent complaints to the PSC and that its management and board going forward have industry experience.

Commissioners asked staff to consult commission counsel about the scope of statutory authority — specifically whether a non‑Maryland holding company’s acquisition of stock that results in a near‑complete ownership change of a Maryland telco requires commission authorization — before the commission acts. The commission took the matter under advisement and said it will follow up after legal review.