DeSantis escalates battle with Disney in new legislative push

On Monday, Florida Governor Ron DeSantis said the Republican legislature will void Walt Disney Co (DIS.N)’s attempt to evade state regulation of Walt Disney World.

DeSantis, a Republican presidential contender who frequently criticizes “woke Disney,” said the legislature will invalidate a development agreement Disney made with outgoing oversight board members.

“They thought they could create some type of development agreement that would render everything we did null and void,” DeSantis said. “Not happening.”

In March 2022, Disney’s then-Chief Executive Bob Chapek spoke out against a bill limiting sexuality and gender identity discussions in Florida elementary schools, starting a feud with DeSantis, who has yet to announce a presidential bid.

Republicans called it the Parental Rights in Education Act, while opponents called it the “Don’t say gay” law.

On Monday, DeSantis claimed the proposed law would return control of Disney World’s special district to a governor-appointed oversight board.

It will allow the board to develop land near Disney’s theme parks. DeSantis mentioned state parks, amusement parks, and prisons.

Disney fell 0.2% to $99.68.

DeSantis and the Florida legislature have been trying to end Disney World’s virtual autonomy for more than 50 years, calling it a “unfair advantage.” Disney employs 75,000 state residents.

In February, Florida lawmakers gave DeSantis effective control over a board that governs municipal services and development in a central Florida special district that includes Walt Disney World.

Disney CEO Bob Iger labeled it “anti-business” and “anti-Florida.” DeSantis’ Monday remarks were unremarked by the firm.

Disney changed the special tax district deal before DeSantis appointees took office, limiting the board’s ability for decades.

Last month, an attorney for the newly formed Central Florida Tourism Oversight District termed it “shocking” because the arrangement was negotiated three weeks before DeSantis signed legislation providing the state jurisdiction over the district.

“I’ve never seen anything like this,” said attorney Daniel Langley on March 29.

On July 15, 2022, a 10-year comprehensive plan was adopted to guide future development. Disney can add a fifth major theme park, two minor parks, 1 million square feet of shopping, and 14,000 hotel rooms.

It also guarantees future boards’ commitment to $527 million in capital enhancements to support Walt Disney World’s growth over the following decade.

“We are a government of laws, not individual men or even ‘woke’ corporations based in California,” DeSantis remarked.