Florida legislature approves bill allowing DeSantis-appointed board to cancel Disney agreements

Julia Shapero
The Hill
Fri, 05 May 2023 16:32 UTC

© Advocate/Dania Maxwell/Getty Images

Florida Governor Ron DeSantis • Disneyland

The Florida legislature approved a bill Thursday allowing a tourism board appointed by Gov. Ron DeSantis (R) to oversee Disney World and cancel any agreements made in the three months before the board's creation.

The bill, which next heads to DeSantis's desk, would allow the Central Florida Tourism Oversight District board to nullify a last-minute deal by Disney that effectively undermined the governor's efforts to exert more control over the Florida amusement park.

The legislation represents the latest move in DeSantis's ongoing feud with Disney. The Florida governor has sought to strip away Disney World's special self-governing powers since the company criticized his so-called "Don't Say Gay" law last year.

The Parental Rights in Education law barred classroom instruction on sexual orientation and gender identity from kindergarten through third grade, a prohibition that has since been extended through high school.

Shortly before DeSantis's newly appointed board was set to take over, Disney and the previous board for the Reedy Creek Improvement District signed an agreement giving the company developmental authority over the park.

The DeSantis-backed board voted last week to void the agreement, claiming that Reedy Creek did not have the authority to make decisions within the city boundaries of Bay Lake and Lake Buena Vista.

Comment: And from Reuters, it's a done deal:

Florida Governor Ron DeSantis on Friday signed a bill into law that gives a new board he controls the power to void development agreements its predecessor body signed with Disney - the latest episode in a feud between the conservative governor and the entertainment giant.

Under the bill, which passed the Republican-controlled legislature largely along party lines, the Central Tourism Oversight District Board - whose members are appointed by DeSantis - can cancel any deals signed up to three months before the board's creation.

"Make no mistake about it, the reason why the legislature had to act was not because of anything we did," DeSantis said at a news conference Friday. "It was basically born out of Disney's arrogance that they would be able to subcontract around the duly enacted laws of the state of Florida. That's wrong."

Walt Disney Co (DIS.N) declined to comment.

The legislature formed the board in February to replace the Disney-controlled Reedy Creek Improvement District to oversee development in the 25,000 acres (10,120 hectares) surrounding Walt Disney World, effectively wresting control from the company and handing it to DeSantis.

Disney, the largest employer in central Florida, and the Republican governor have been battling since last year, when Disney criticized a new state law banning classroom instruction of sexuality and gender identity with younger children.

DeSantis, who is expected to declare his candidacy for U.S. president in coming weeks, has repeatedly attacked "woke Disney" in public remarks, characterizing it as liberal.

"We have a fundamental disagreement in this state, in terms of what we think is appropriate for children, and what the people in Burbank, California, think is appropriate," said DeSantis. Disney is based in Burbank.

Before DeSantis' appointees took over the board, the company pushed through changes to the special tax district agreement that limited the new body's action for decades.

The new oversight body in April said Disney's plans for potential expansion of Disney World did not comply with state law, and declared that agreement void.

Disney filed a lawsuit in federal court the same day, accusing DeSantis of illegally using government power to punish the company for exercising its free speech rights.

The Central Florida Tourism Oversight District board responded with its own lawsuit in a state court, saying it sought to void "backroom deals" favorable to Disney.

Disney's stock is up nearly 16% in the year to date, compared with an 8% gain in the S&P 500 index (.SPX).

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