Why are Disney World and the state of Florida – led by Gov. Ron DeSantis, a probable Republican nominee for the 2024 presidential election – suing and countersuing each other?
DeSantis says Disney is pursuing a political agenda and that “no corporation is above the law.” In a 77-page lawsuit filed in April, Disney said DeSantis is retaliating against the corporation.
It started in 2022 when Disney opposed Florida’s Parental Rights in Education bill, labeled by critics as the “Don’t Say Gay” bill, which limited discussion of LGBTQ issues and gender identity in schools. That escalated into a series of partisan exchanges.
The education bill attracted national attention and much criticism, which Disney, the state’s largest private employer, joined. DeSantis signed the bill into law, increasing opposition.
Florida revoked Disney’s special tax status and replaced it with a board DeSantis controlled. Disney responded by stripping the new board of its power.
Both sides continue to file lawsuits. Here is how the dispute evolved.
Florida lawmakers pass the wide-ranging Parental Rights in Education bill, which prohibits public school teachers from talking about sexual orientation and gender identity in kindergarten to third grade. The bill also limits undefined “age appropriate” discussions in other grades.
Critics call the measure the “Don’t Say Gay” bill and say it will stigmatize LGBTQ children and prevent them from talking about their lives and families in public school classrooms.
After Disney employees complain about the company’s lack of reaction to the bill, CEO Bob Chapek tells shareholders he called DeSantis and expressed disappointment and concern that the bill “could be used to target gay, lesbian, nonbinary and transgender kids and families.”
Chapek says Disney will sign the Human Rights Campaign’s statement opposing laws targeting the LGBTQ community and will give $5 million to organizations fighting them.
In response, DeSantis lashes out at Disney. “You have companies like Disney that are going to say and criticize parents’ rights, they’re going to criticize the fact that we don’t want transgenderism in kindergarten and first grade classrooms,” DeSantis tells a group of supporters in a video obtained by Fox News Digital.
The Human Rights Campaign later says it will refuse money from Disney “until we see them build on their public commitment and work with LGBTQ+ advocates to ensure that dangerous proposals, like Florida’s Don’t Say Gay or Trans bill, don’t become dangerous laws, and if they do, to work to get them off the books.”
Chapek tells employees that Disney is halting all political contributions in Florida.
Disney employees around the country stage walkouts in support of LGBTQ rights and call on Disney to support LGBTQ employees. Chapek announces a number of supportive measures, including donations to advocacy groups.
DeSantis signs the controversial bill into law. Later, in a corporate tweet, Disney says it will work to get the law repealed.
“Florida’s HB 1557, also known as the “Don’t Say Gay ” bill, should never have been passed and should never have been signed into law. Our goal as a company is for this law to be repealed by the legislature or struck down in the courts and we remain committed to supporting the national and state organizations working to achieve that.”
“I think they crossed the line,” DeSantis says in a news conference at the state Capitol. “We’re going to make sure we’re fighting back when people are threatening our parents and threatening our kids.”
A number of GOP lawmakers begin returning campaign contributions from Disney.
DeSantis says state lawmakers will consider repealing the governing structure for Disney’s Florida properties. The special tax district is called the Reedy Creek Improvement District, and it allows the 25,000-acre Disney World resort to operate as its own county government.
Disney’s district spans 25,000 acres over two counties. It was created in 1967 to give Disney control over its property and exempted 38 miles of land Disney owns from most state and local regulations. It allowed Disney to collect taxes, follow its own building codes and provide emergency services for its six theme parks and resorts.
Florida lawmakers pass a bill revoking Disney’s self-governing status as of June 1, 2023. They take less than 48 hours to write, debate and approve the bill.
DeSantis signs the bill into law and warns of more consequences if Disney does not end its diversity and inclusion program.
Four Central Florida residents file suit to block the Reedy Creek dissolution. They say it will hurt taxpayers, threaten thousands of jobs, and violate the Florida Taxpayers’ Bill of Rights and contractual law and constitutional guarantees of free speech and due process.
The suit, filed on behalf of Michael, Edward and Leslie Foronda of Osceola County and Vivian Gorsky of Orange County, says the dissolution will make taxpayers responsible for more than $1.7 billion of Disney’s debt. The 1967 law that initially created the Reedy Creek Improvement District forbids its dissolution until all bond obligations are met and debts discharged.
The dissolution could raise Orange County property taxes by 20% to 25%, predicts Scott Randolph, county tax collector.
In a win for DeSantis, U.S. District Court Judge Cecilia Altonaga dismisses the lawsuit. The judge says the residents lack standing to file, the federal court lacks standing to decide the question, and the law does not take effect until 2023.
DeSantis says Florida will bypass local governments and take control of Reedy Creek. He says the state will protect Central Florida residents.
Disney brings back former CEO Bob Iger to replace Chapek and says Iger will stay on for two years.
Chapek had been criticized for his cost-cutting efforts, price increases at theme parks, lower-than-expected revenue and his handling of a lawsuit from Scarlett Johansson over her pay for “Black Widow.” His involvement with the DeSantis feud couldn’t have helped.
With Iger’s return, DeSantis says “a plan is in the works” as the Financial Times reports that state lawmakers are working on a compromise to allow Disney to hold on to its special tax privileges, with some tweaks.
DeSantis announces a plan to take over Disney’s special district by appointing a new board to control Reedy Creek. The board would be named the Central Florida Tourism Oversight District, and DeSantis would name its members. The plan would shield local taxpayers by putting $700 million in outstanding debts onto Disney.
Reedy Creek was previously led by a five-member board whose members were essentially hand-picked by Disney.
“The corporate kingdom has come to an end,” DeSantis’ communications director, Taryn Fenske, tells Fox News.
On the day before lawmakers voted to establish a new board, Disney makes changes to the board’s authority, limiting its power for decades. Lawmakers and board members protest, but Disney said the agreements were legal and took place in public.
“All agreements signed between Disney and the District were appropriate, and were discussed and approved in open, noticed public forums in compliance with Florida’s Government in the Sunshine law,” a Disney statement said.
DeSantis’ new district also is prohibited from using the name “Disney” or any symbols associated with the theme park resort without the company’s permission.
The new Central Florida Tourism Oversight District does not discover this until the end of March.
Unaware of Disney’s actions, DeSantis signs a bill that gives him control over Disney’s self-governing district.
News of Disney removing the board’s authority becomes public.
The DeSantis-Disney feud escalates as the governor calls for an investigation into Disney and Iger accuses DeSantis of punishing the corporation for opposing new state education laws, including the “Don’t Say Gay” measure.
DeSantis says the Florida Legislature will void Disney’s agreement with Reedy Creek. Speaking at Hillsdale College, a conservative Christian school in Michigan with which DeSantis is closely aligned, the governor says he will not relent in his battle with Disney.
DeSantis announces new legislation to assert control over Disney, suggesting that a prison could be built near the resort.
DeSantis says other plans include tolls on nearby roads, ride inspections, taxes on Disney hotels, and property assessments. He says low-cost housing, other theme parks or a prison could be built nearby.
The state board of education approves a ban on classroom instruction about sexual orientation and gender identity in all grades. It’s an expansion of the law DeSantis signed in March 2022.
Disney sues DeSantis for “unconstitutional’ and ‘retaliatory” acts and says the governor led a “targeted campaign of government retaliation” against the company.
The lawsuit alleges five violations of Disney’s constitutional rights by DeSantis: two free speech violations, a property rights violation, a due process violation and a violation of the contracts clause.
“Disney regrets that it has come to this,” the lawsuit reads. “But having exhausted efforts to seek a resolution, the Company is left with no choice but to file this lawsuit.”
A DeSantis spokesperson calls the lawsuit “yet another unfortunate example” of Disney’s “hope to undermine the will of the Florida voters and operate outside the bounds of the law.”
The Central Florida Tourism Oversight District board set up by DeSantis to oversee Disney’s special tax district sues the theme park to regain control over the park’s expansion.
The state Legislature approves a bill giving the Florida Department of Transportation the authority to inspect the monorail system at Disney World. The 15-mile monorail transports 150,000 passengers a day.
Under an agreement with the Department of Agriculture and Consumer Services, Disney and other large theme parks do their own safety inspections.
The Florida senate approves a bill that would let the Central Florida Tourism Oversight District board cancel development agreements that were made three months before the board was created.
The corporation amends its April 26 lawsuit to include its opposition to the May 4 Florida bill and against state inspections of the Disney World monorail system.
DeSantis signs the bill requiring the state Department of Transportation to inspect the Disney World monorail system every three years, starting July 1.
DeSantis says he’ll continue attempts to limit Disney’s power in Florida. “Sometimes you just need an executive to come in and tell them to pound sand,” DeSantis tells the American Conservative in an interview.
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CONTRIBUTING C.A. Bridges and James Call, Tallahassee Democrat; Zac Anderson, Sarasota Herald-Tribune
SOURCE USA TODAY Network reporting and research; Associated Press