ARCHIVO - La foto muestra el castillo de Cenicienta en el 50 aniversario de Walt Disney World, 30 de agosto de 2021 en Lake Buena Vista, Florida. (AP Foto/John Raoux, File) Rep. Carlos Guillermo Smith, D-Orlando (blue suit, in back) yells his objection as Republicans in the House of Representatives applaud after Senate Bill 4C Independent Special Districts, which affects Disney, passes Thursday, April 21, 2022 at the Capitol in Tallahassee, Fla. The session was halted on a protest by Democrats, but continued after a brief recess. (AP Photo/Phil Sears) Eastern seaboard architecture of turn of the century America is being recreated in Main Street U.S.A., at Walt Disney World's Magic Kingdom theme park in Orlando, Fla., Nov. 1970. The idea was presented to Florida lawmakers in a movie house outside Orlando, Florida 55 years ago: Let Disney form its own government and in exchange it would create a futuristic city of tomorrow. (AP Photo) Rep. Randy Fine, R-Palm Bay, answers a question about his House Bill 3-C: Independent Special Districts in the House of Representatives Wednesday, April 20, 2022, at the Capitol in Tallahassee, Fla. A companion bill, which could dissolve the special district for Disney, passed in the Senate and the House is scheduled to vote on that version Thursday. (AP Photo/Phil Sears) Rep. Fentrice Driskell, D-Tampa, asks a question about an amendment to House Bill 3-C: Independent Special Districts in the House of Representatives Wednesday, April 20, 2022, at the Capitol in Tallahassee, Fla. The amendment failed. A companion bill, which could dissolve the special district for Disney, passed in the Senate, and the House is scheduled to vote on that version Thursday. (AP Photo/Phil Sears) Rep. Nicholas X. Duran, D-Miami, asks House Bill 3-C: Independent Special Districts sponsor Rep. Randy Fine, R-Palm Bay, a question in the House of Representatives Wednesday, April 20, 2022, at the Capitol in Tallahassee, Fla. A companion bill, which could dissolve the special district for Disney, passed in the Senate and the House is scheduled to vote on that version Thursday. (AP Photo/Phil Sears) Rep. Bobby Payne, left, R-Palatka, and Rep. Michael Grant, R-Port Charlotte, confer during debate over House Bill 3-C: Independent Special Districts in the House of Representatives Wednesday, April 20, 2022, at the Capitol in Tallahassee, Fla. A companion bill, which could dissolve the special district for Disney, passed in the Senate and the House is scheduled to vote on that version Thursday. (AP Photo/Phil Sears) House Speaker Chris Sprowls, R-Palm Harbor, admonishes Rep. Carlos Guillermo Smith, D-Orlando (not pictured) about his line of questioning during debate on House Bill 3-C: Independent Special Districts in the House of Representatives Wednesday, April 20, 2022, at the Capitol in Tallahassee, Fla. The Florida Senate has passed a bill to repeal a law allowing Walt Disney World to operate a private government over its properties in the state. The Florida House of Representatives is expected to take up the bill Thursday. (AP Photo/Phil Sears) U.S. Rep. Charlie Crist, D-Fla., top center, criticizes Gov. Ron DeSantis as "un-American" for targeting Disney with special session bills Wednesday, April 20, 2022, at the Capitol in Tallahassee, Fla. The Democratic U.S. congressman is running for governor of Florida. (AP Photo/Phil Sears) Flanked by Rep. Dianne Hart, D-Tampa and Rep. Michele K. Rayner, D-St. Petersburg, U.S. Rep. Charlie Crist, D-Fla., criticizes Gov. Ron DeSantis as "un-American" for targeting Disney with special session bills Wednesday, April 20, 2022 at the Capitol in Tallahassee, Fla. The Democratic U.S. congressman is running for governor of Florida. (AP Photo/Phil Sears) U.S. Rep. Charlie Crist, D-Fla. criticizes Gov. Ron DeSantis as "un-American" for targeting Disney with special session bills Wednesday, April 20, 2022, at the Capitol in Tallahassee, Fla. The Democratic U.S. congressman is running for governor of Florida. (AP Photo/Phil Sears) Florida Gov. Ron DeSantis addresses a joint session of a legislative session, Jan. 11, 2022, in Tallahassee, Fla. Florida Gov. DeSantis on Tuesday, April 19, asked the Legislature to repeal a law allowing Walt Disney World to operate a private government over its properties in the state, the latest salvo in a feud between the Republican and the media giant. (AP Photo/Phelan M. Ebenhack, File) The Walt Disney Co. logo appears on a screen above the floor of the New York Stock Exchange on Aug. 7, 2017. Florida Gov. Ron DeSantis on Tuesday, April 19, 2022, asked the Legislature to repeal a law allowing Walt Disney World to operate a private government over its properties in the state, the latest salvo in a feud between the Republican and the media giant. (AP Photo/Richard Drew, File) Ray Maxwell, administrator of the Reedy Creek Improvement District, Disney World's government, points to Walt Disney World on an aerial photo in his office in Lake Buena Vista, Fla., Tuesday, Dec. 14, 2004. The Florida Legislature has passed a bill to dissolve a private government controlled by Disney that provides municipal-like services for its 27,000 acres in the Sunshine State. The proposal has been pushed by Republican Gov. Ron DeSantis, and is largely viewed as retribution for Disney’s criticism of a new state law that bars instruction on sexual orientation and gender identity in kindergarten through third grade. (AP Photo/Peter Cosgrove, File) A new billboard welcoming visitors to "Florida: The Sunshine 'Don't Say Gay or Trans' State. is displayed April 21, 2022, in Orlando, Fla. The Florida Legislature has passed a bill to dissolve a private government controlled by Disney that provides municipal-like services for its 27,000 acres in the Sunshine State. The proposal has been pushed by Republican Gov. Ron DeSantis, and is largely viewed as retribution for Disney’s criticism of a new state law that bars instruction on sexual orientation and gender identity in kindergarten through third grade. (AP Photo/John Raoux, File)
TALLAHASSEE, Fla. (AP) — Florida Gov. Ron DeSantis has signed into law a bill to dissolve a private government controlled by Disney that provides municipal-like services for its 27,000 acres (nearly 11,000 hectares) in the Sunshine State.
The new law is largely seen as retribution for Disney's criticism of a new state law that critics have dubbed “Don't Say Gay,” which bars instruction on sexual orientation and gender identity in kindergarten through third grade.
The entertainment giant has not commented publicly on the proposal to dissolve its government, which has been in operation for 55 years.
WHAT DOES THE LAW DO?
The bill, which the Legislature passed on Thursday and DeSantis signed into law on Friday, would eliminate the Reedy Creek Improvement District, as the Disney government is known, as well as a handful of other similar districts by June 2023.
The measure does allow for the districts to be reestablished, leaving an avenue for Disney and lawmakers to renegotiate their deal between now and June 2023.
“By doing it this early, we have until next June or July to this put together, so we’re actually giving ourselves more time to be thoughtful,” said Republican Senate President Wilton Simpson. “I don’t know how the end will come, but I know that this is a very worthy process that we’re taking and I think whatever comes out of it will be better than what we have today.”
WHAT HAPPENS NEXT?
Although details are far from clear, the proposal could have huge tax implications for Disney. Democratic state lawmakers who oppose the bill also have warned that it could result in homeowners getting hit with big tax bills if they have to absorb costs the company used to pay.
Orange County Mayor Jerry Demings, whose county is partially home to Disney World, said it would be “catastrophic for our budget” if the county had to assume the costs for public safety at the theme park resort. Reedy Creek currently reimburses the Orange County Sheriff’s Office for public safety costs.
“If that district goes away, and they no longer pay for those public safety costs, and it then has to fall to the county’s other budgets, that is a net sum loss to the rest of the taxpayers of Orange County,” Demings said.
WHY DOES DISNEY HAVE ITS OWN GOVERNMENT IN FLORIDA?
The company sold the idea to Florida lawmakers in 1967 as part of its plans to build an expansive East Coast theme park that would include a futuristic city.
The city never materialized, but Walt Disney World nevertheless became an entertainment juggernaut in Orlando, while still retaining governmental powers that have allowed it to decide what and how to build and to issue bonds and provide services such as zoning, fire protection and utilities.
The Reedy Creek Improvement District, as the Disney government is known, has been allowed to build its own roads, run its own wastewater treatment plants, operate its own fire department, set its own building codes and inspect Disney buildings for safety.
The district had $169 million in revenues and $178 million in expenditures in the current budget year.
Disney is a major political player in Florida, as well as the rest of the country. The Walt Disney Co. and its affiliates made more than $20 million in political contributions to both Republicans and Democrats in the 2020 campaign cycle, the most recent year for which figures are available, according to the Center for Responsive Politics, which tracks such spending.
That same year, Disney-related entities funneled $10.5 million to the America First Action committee, which supports Republican former President Donald Trump. Disney also contributed $1.2 million to support President Joe Biden's campaign.
In response to the gender instruction law, Disney announced it was suspending political donations in the state and would support organizations that oppose it.
WHY ELIMINATE THE GOVERNMENT NOW?
DeSantis has railed against Disney after the company's public opposition to the gender instruction law.
This week, as lawmakers were returning to the Capitol for a special legislative session focused on congressional redistricting, DeSantis issued a proclamation allowing them to also take up legislation eliminating the Reedy Creek Improvement District.
For the governor, the attack on Disney is his latest salvo in a culture war waged over policies involving race, gender and the coronavirus, battles that have made him one of the most popular GOP politicians in the country and a likely 2024 presidential candidate.
“If Disney wants to pick a fight, they chose the wrong guy” the governor wrote in a fundraising email. “As Governor, I was elected to put the people of Florida first, and I will not allow a woke corporation based in California to run our state.”
Republican Rep. Randy Fine, sponsor of the bill to scrap the district, said it is time for a change.
“You kick the hornet’s nest, things come up. And I will say this: You got me on one thing — this bill does target one company. It targets the Walt Disney Co.,” Fine said. “You want to know why? Because they are the only company in the state that has ever been granted the right to govern themselves.”
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