Here’s How Florida Republicans Could Punish Disney For ‘Don’t Say Gay’ Opposition

Topline

Florida Gov. Ron DeSantis and other Republican state officials are lashing out at Disney for its opposition to the Parental Rights in Education Act (referred to by critics as the “Don’t Say Gay” law) and its vow to help strike the law down—and it could have actual consequences for Disney and the special privileges it’s been afforded by the government.

Cinderella’s Castle at Walt Disney World Resort on March 3 in Lake Buena Vista, Florida.

Getty Images for Disney Dreamers Academy

Key Facts

Florida state Rep. Spencer Roach (R) tweeted Wednesday that state legislators have met about repealing the 1967 Reedy Creek Improvement Act, which established the Reedy Creek Improvement District, a special taxing district that essentially enables Walt Disney World to act as its own city.

Rather than local governments, Disney is in control of everything from construction zoning, building codes and fire department services to controlling its own electricity, roads and water, meaning if the law is repealed, Disney will now have to get government approval for decisions about its operations—which might be harder or take longer to get.

Florida lawmakers had also granted in 2021 a carveout in a law banning any form of “censorship” by social media companies that exempts companies with theme parks, which the lawmaker behind that amendment said was designed to ensure Disney Plus would not be affected.

DeSantis suggested Thursday he wants the legislature to repeal that amendment—though the law is right now blocked in court anyway—saying during a press conference “it was embarrassing” it was part of the law to begin with.

Florida is also set to issue more than $600 million in corporate tax refunds in May—which would include Disney—which several Democratic lawmakers in the state have told Republicans they should address if they’re serious about not letting Disney enjoy special privileges.

Disney was also given tax breaks of potentially up to $570 million from the state government for moving additional theme park jobs to Florida, the Orlando Sentinel reports, so it’s possible Republicans could also try to revoke that approval.

Crucial Quote

“There’s a lot of special privileges that are not justifiable, but because Disney had held so much sway, they were able to sustain a lot of special treatment over the years,” DeSantis said Thursday. “And now with their conduct … I just don’t think you have very many people in the legislature anymore that are going to be able to defend what has been done over many, many years to have them govern themselves.”

What To Watch For

How Disney will respond. The company had already paused political donations in Florida. If it declines to start donating again to Republican politicians, it could have an impact: Disney donated $4.8 million to Florida candidates in the 2020 election cycle, Politico reports, citing federal election records, including $913,000 to the Republican Party of Florida and $50,000 to DeSantis. The company also wields considerable influence in the state legislature, the Tallahassee Democrat reports, through its significant economic impact on the state through Walt Disney World and an extensive lobbying operation, which it’s likely to flex if Republicans start taking action against it. Disney’s tussle with the GOP likely won’t affect the company’s sizable economic footprint in Florida—Walt Disney World is the largest single-site employer in the country, and the resort drives Central Florida tourism, which provides over $5 billion in annual state tax revenue. But should it want to enact revenge, it could change its plans to move 2,000 jobs to Florida from California.

Surprising Fact

The Reedy Creek Improvement District isn’t run directly by Disney, but rather a five-person board of supervisors who makes decisions about the district. That being said, the Sentinel reports everyone on the board is hand-selected by Disney, letting the company still oversee the local government indirectly. There are also approximately 44 residents living within the district who vote in local elections, the Sentinel reported in 2015—but they, too, are hand-picked by Disney. Votes are also given unequal weight based on how much land the voters own, meaning Disney holds a significant majority vote.

Key Background

Disney is being punished for publicly opposing HB 1557, which bans any school instruction on “sexual orientation or gender identity” through the third grade, and any discussions about it in older grades if it’s “in a manner that is not age appropriate or developmentally appropriate.” The company came out against the bill after it had already passed the state legislature—after drawing widespread criticism from the left and its own employees for not speaking out sooner—and paused all of its political donations in Florida as a result. After DeSantis signed the bill into law on Monday, Disney came out with an even sharper statement that said the law “should never” have been passed or enacted, and that its “goal as a company is for this law to be repealed by the legislature or struck down in the courts.” That statement is what escalated Republicans’ objections to the company, and multiple GOP state lawmakers have said they’re returning Disney’s political donations to them as a result.

Tangent

The first effort to strike down HB 1557 came on Thursday, as Equality Florida and LGBTQ students and families filed the first lawsuit challenging the law in federal district court.