PA DEPARTMENT OF STATE ISSUES STATEMENT ON CITIZENS UNITED RULING. 
The Pennsylvania Department of State (DOS) on Thursday issued a statement regarding the recent United States Supreme Court’s decision in Citizens United v. FEC and detailing its interpretations of how it affects existing provisions of Pennsylvania campaign finance law.  The Supreme Court’s ruling overturned previous decisions that upheld federal laws that prohibited corporations and unions from using their general treasury funds to make independent expenditures that expressly advocate for the election or defeat of a candidate.  While the Citizens United ruling directly impacts federal campaign finance law, the Supreme Court held that both federal and state laws that prohibit such independent expenditures violate the First Amendment.  By implication the ruling invalidates any state laws that prohibit these types of independent expenditures.  

Many have been waiting for the DOS to take some action to clarify the impact of the decision on Pennsylvania law, similar to the statement of the Federal Election Commission, issued shortly after the ruling, clarifying the impact on federal campaign law.  The DOS statement notes that Section 1633(a) of the Pennsylvania Election Code currently “prohibits any corporation organized under the laws of any state or foreign country and any unincorporated association (including a labor union) … to make a contribution or expenditure in connection with the election of any candidate or for any political purpose, whatever, except in connection with any question to be voted on by the electors of the Commonwealth.”  However, the DOS goes on to conclude that “under Citizens United, section 1633(a) cannot be administered constitutionally to prohibit a domestic corporation or unincorporated association from making independent expenditures.” 

In short, the Supreme Court ruling does invalidate certain provisions of state election law.  The DOS statement emphasizes that corporations and unions are still prohibited from making direct contributions to candidates with their general treasury dollars, meaning companies and unions will still need to form and use political action committees to make such direct contributions.  DOS stated that corporations and unions are still prohibited from coordinating with campaigns regarding independent expenditures and that state election law still prohibits any expenditure by a corporation organized under the laws of a foreign country.  The statement also indicates that applicable disclaimer and reporting requirements are still in force.  PEG PAC has made independent expenditures paid for solely by PAC dollars in past campaigns.  The Pennsylvania Business Council is now eligible to make independent non-coordinated expenditures (as explicitly defined) advocating for the election or defeat of a candidate, which expenditures can be paid for with its corporate treasury funds in light of the Supreme Court decision and DOS statement.

 Full text of Department of State Statement on Citizens United application in PA

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