Shortly after Governor Ron DeSantis asked Florida lawmakers to extend their special session to revoking the special district for Walt Disney World, they delivered. The Senate advanced the measure Wednesday 23-16, and the House passed it 70-38 Thursday. Though the governor hasn’t signed it yet, he promised he will. Legal challenges seem certain, and it appears the original law may have actually invested the authority to dissolve elsewhere. Regardless of whether DeSantis wins in this specific case, however, it demonstrates just how much control the GOP wields over the state. And, of course, it sends a message loud and clear to corporations: Don’t play the game of politics if you aren’t prepared to lose.
In 1967, Florida lawmakers established the Reedy Creek Improvement District, which gave Walt Disney World 25,000 acres of self-governed land on which to build as the company saw fit. Just like a county government, Disney was able to control its own roads, construction permits, building codes, etc. According to a 2019 article in Forbes, Disney World could even have built a powerplant and gone nuclear, had leadership been so inclined. Additionally, the theme park has been the beneficiary of massive tax breaks and even its own carve-out of special exemption to a more recent state social media censorship law.
That’s all up in the air, however, now that company bigwigs decided to wade too far out in the waters of political activism.
Don’t Say Disney
This all started when Disney employees protested the so-called “Don’t Say Gay” bill by walking off the job, prompting the company to formally oppose the legislation. “Starting immediately, we are increasing our support for advocacy groups to combat similar legislation in other states,” CEO Bob Chapek said in an emailed apology to his employees for not taking a more active stance against the bill.
To be clear, the “Don’t Say Gay Bill” is neither the official name of the act nor a description of what it actually does. As Liberty Nation Legal Affairs Editor Scott D. Cosenza, Esq. explained, “it’s the name cleverly tagged to it by those who want to use the bill to burnish their victimization.” The law requires schools to inform parents if they see changes in the mental, emotional, or physical health or well-being of the children, respect the fundamental rights of parents to make decisions on the upbringing and control of their kids, prohibits school district personnel from discouraging or preventing parental notification and involvement, and prohibits schools from encouraging classroom discussion of sexual orientation or gender identity in primary grade levels. Nowhere does it say teachers can’t answer questions – only that they can’t teach LGBTQ ideology to elementary students.
The Price of Politics
If you can’t stand the heat, stay out of the kitchen. Don’t play the game if you can’t afford to lose. Pick your poison; either idiom works here. Was DeSantis’ move motivated entirely by Disney’s decision to play politics? Probably. Oh, sure, it could be denied – but most honest folks wouldn’t buy it. Does that make it wrong? Not necessarily – and if the reason’s unclear, feel free to refer to the previous sayings about dealing with consequences as many times as needed.
(Photo by Octavio Jones/Getty Images)
The simple truth is that The Walt Disney Company (TWDC) had a sweetheart deal and blew it. The new law passed in special legislative session changes the requirements for special districts so that Disney’s and a handful of others will be dissolved in June 2023. After that point, they can reapply, so long as they meet the standards now set out in law. Additionally, that privileged exemption from the social media censorship law is gone. The corporate tax breaks, however, remain, as the governor said he doesn’t intend to address that. So the $570 million tax break the company is set to receive for building a new office complex is, according to the Orlando Sentinel, still coming in May.
There’s a chance, though, that the district can’t be dissolved by the state – and so that part, at least, may be overturned in court. State Senator Linda Stewart (D-Orlando) claimed that Disney officials told her the state legislature doesn’t have the authority to dissolve Reedy Creek, as the original law stipulated such action would require a majority vote by the district’s landowners. As such, this seems destined for expensive and likely long litigation.
How will this situation affect the people of the Sunshine State? It’s nigh impossible to tell for sure. While the company may end up paying more in taxes – even with the state corporate tax break it will still enjoy, for now – the roads, waste management, code enforcement, rescue services, and more of Walt Disney World would be a tax-funded burden on the county. Just which side that trade-off favors remains to be seen. Then there’s the oversight. Thus far, Disney has had its own people to evaluate building codes and environmental concerns inside the district. A 2009 lawsuit in California against TWDC for allegedly illegally dumping toxic chemicals immediately springs to mind, for example. But again, this all hinges on this law being allowed to take effect. DeSantis and the state’s Republican lawmakers certainly think it will – but the courts could disagree.
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