April 22 (Reuters) – Florida Gov. Ron DeSantis on Friday signed a bill depriving Walt Disney Co. (DIS.N) of self-governing power in its parks in the Orlando area in retaliation for its opposition to a new law restricting the teaching of LGBTQ problems in schools.
The Republican-controlled legislature on Thursday approved a bill that would remove a special governing jurisdiction that allows the company to run Walt Disney World Resort as its own city. Within a 25,000-acre site, he manages four theme parks, two water parks and a 175-mile road.
Disney’s special status was “indeed a diversion,” De Santis told a news conference at which he signed the bill. “No person or company in Florida is treated this way.
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Disney did not immediately comment on the signing of the bill.
Although the financial impact on the company and the state is uncertain, the change could change the way Disney manages its expansive empire in Central Florida and worsen the close relationship it has maintained with the state for more than 50 years.
The governor said Friday that Disney would pay more taxes as a result of the law, but gave no details.
DeSantis is a potential Republican presidential candidate in 2024, courting conservative voters on issues such as immigration, abortion and LGBTQ rights.
With his latest move against Disney, DeSantis is trying to smooth over his conservative qualities by showing that he is ready to face what he described as an “awakened” California-based company that does not share Florida’s values.
Initially, Disney did not publicly oppose LGBTQ legislation last month, which drew criticism from the community and some officials. The company later condemned the law and said it would suspend political donations in Florida pending review.
The law, called by critics the Don’t Say Gay bill, bans classroom instruction on sexual orientation or gender identity for children in kindergarten through third grade. DeSantis supported the measure, saying it would give parents more control over their children’s education.
Security officers guard the entrance to the Magic Kingdom of Walt Disney World in Orlando, Florida, USA, June 13, 2016. REUTERS / Barbara Liston / File photo
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Opponents call it a weakly veiled attempt to marginalize gay and transgender students or the children of queer parents.
At a fundraiser in Seattle on Thursday, President Joe Biden assessed the clash between Disney and Republicans in Florida. He said efforts to impose such restrictions “have nothing to do with traditional conservative doctrine”.
“I respect the Conservatives. There’s nothing conservative about deciding to kick Disney out of his current position because Mickey Mouse … should … he can’t say, you know, gay.”
Although the bill appears to be an attack on Disney and the vast theme parks of Orlando, experts say the financial impact of the legislation on the company and the state is unclear at this stage.
DeSantis passed the bill through the state building, passing it within three days of a special session, but it will not take effect until June 2023, giving both sides time to adjust to the new reality.
The law dissolves the Reedy Creek Improvement District, which was created in the 1960s to attract Disney World to the state after the much smaller Disneyland became a hit theme park in California.
For more than half a century, the district has allowed Disney to function as a county government, providing services such as firefighting, electricity, water and roads in Orange and Osceola counties. For its part, Disney can issue tax-bonded bonds to pay for improvements.
Disney is a major political contributor to the state. In the 2020 election cycle, the company donated a total of $ 4.8 million, including campaign funds to more than 100 individual Florida lawmakers, some of whom sponsored the law Thursday, government records show.
It is unclear whether the state or the company will suffer the most now that the bill enters into force.
Walt Disney Resort has paid $ 780.3 million in state and local taxes in 2021, according to an information sheet marking the 50th anniversary of the theme park. Orange County tax collector Scott Randolph said the law would penalize local taxpayers more than Disney.
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Report by Maria Caspani in New York and Dawn Khmelevsky in Los Angeles Writing by Daniel Trotta Edited by Chizu Nomiyama and Matthew Lewis
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