Explained | Ron DeSantis takes control of Disney's self-governing district in Florida amid 'Don't Say Gay' row

Ron Desantis, the Florida Governor and Republican potential contender for US president, made good on his promise to punish the Walt Disney Company for its opposition to the so-called 'Don't Say Gay' law and spreading, in his words, 'woke ideology' in the state. He has signed a bill that will give him control of the unique legal entity that is Disney World's self-governing district called Reedy Creek Improvement District (RCID). 

The RCID was established by the Florida state legislature in 1967 at the request of Walt Disney Productions, which was then in the process of building Walt Disney World in central Florida. 

The bill empowers the Governor to appoint a five-member board that will oversee the district. Before this legislation, the board members were hand-picked by Disney. Signing the bill, Desantis triumphantly said, "Today the corporate kingdom finally comes to an end. There's a new sheriff in town, and accountability will be the order of the day."

Also Read: DeSantis ends Disney World's 'corporate kingdom', company loses self-governing status with new law

Analysts see this as a considerable legislative victory for Desantis,   a prime 2024 contender against Donald Trump, who has referred to the Jacksonville native as 'DeSanctimonious'.

Here is an explainer of the whole saga:

What is Reedy Creek Improvement District?

The RCID was established by the Florida state legislature in 1967. The RCID is a special-purpose government entity that covers a 25,000-acre area that includes the Walt Disney World Resort and other related properties. The district is responsible for providing a range of municipal services, such as fire protection, emergency medical services, police services, and road maintenance, within its boundaries. It basically worked like a government, but wasn't a government body and not subject to the accompanying constraints.

The entity is overseen by a five-member board of supervisors, who as mentioned above were appointed by Disney. But now, after the new legislation, the Florida governor will appoint them. The board has the authority to levy taxes and issue bonds to finance the district's operations. Because the RCID was a self-governing district until recently, it had the ability to make its own rules and regulations, subject to the approval of the Florida legislature. This unique arrangement allowed Disney to have a great deal of control over the management and operation of its theme park resort. 

What is the 'Don't Say Gay' bill?

The  'Don't Say Gay' bill is not actually called that. That is the moniker that those opposed to it have given it. It's actually Parental Rights in Education. Signed by DeSantis himself, it is a Florida state law that came into existence in March last year. The law, as the name suggests, claims to give parents more control over their children's education and limit the influence of schools and teachers in certain areas. Most controversial of all, it bars classrooms in public schools from giving instruction or having discussions about sexual orientation or gender identity to students from kindergarten to third grade. It reads, "Classroom instruction by school personnel or third parties on sexual orientation or gender identity may not occur in kindergarten through grade 3 or in a manner that is not age-appropriate or developmentally appropriate for students in accordance with state standards."

The bill had been opposed by members of the LGBTQ community and allies on the grounds that it will lead to censorship and limit the quality of education. They argue that it confines the ability of teachers to provide important information about sexual health and promotes a culture of silence and stigma around LGBTQ+ identities. 

Supporters of the bill, on the other hand, have said that it is necessary to protect parental rights and ensure that parents have a say in what their children are taught in school. They claim that many schools have overstepped their bounds and exposed children to topics that are inappropriate or go against familial values.

Also Read: Explained: How Disney is trying hard not to fail as Marvel magic wanes

Did Disney oppose the 'Don't Say Gay' bill?

Not initially. The Walt Disney Company, perhaps to protect its sprawling empire in Florida, did not publicly denounce the (then proposed) Parental Rights In Education bill when it was passed. This earned the ire of many LGBTQ+ and allied employees in the company. Things worsened when it emerged that the company, then-led by Bob Chapek had made donations to many of those who voted in favour of the bill. 

Chapek and Disney tried to course-correct. But only mildly, as per critics. In a meeting with shareholders, the beleaguered Chapek claimed he and the company had been opposed to the proposed bill from the outset, but did not give voice to the opposition.

 The reason? The company thought it would be more effective to work behind the scenes. The statement read, "While we’ve been strong supporters of the (LGBTQ) community for decades, I know that many are upset that we did not speak out against the bill. Now, we were opposed to the bill from the outset, but we chose not to take a public position on it because we thought we could be more effective working behind the scenes, engaging directly with lawmakers on both sides of the aisle." He also said Disney is pausing all political donations in Florida. Then DeSantis decided to go after Disney.

Also Read: Disney next in line for layoffs, to cut 7,000 jobs in cost-saving efforts

DeSantis vs Disney

Responding to Disney's opposition to the bill, DeSantis had declared, "If Disney wants to pick a fight, they chose the wrong guy." 

He first tried to revoke Disney's special tax status. But that would have made taxpayers in nearby Orange and Osceola counties bear the brunt of basic services in Disney World, including law enforcement and road maintenance. The district's hefty $1 billion debt would have been transferred to the counties, making DeSantis' position untenable.

Thus, DeSantis and his supporters in Florida legislature decided to be clever about it. They chose to keep Disney's special tax district and other related perks. But the board that supervises the district, as mentioned above, will be appointed by DeSantis.

What has been Disney's response?

The company is now led by Bob Iger, who has been the architect of its meteoric rise in the field of film and television thanks to acquisitions like Star Wars and Marvel that have turned out extremely profitable. Chapek's handling of the bill may have been one of the reasons he was ousted in November, 2022. But this may be a big test for even Iger. Whatever his personal views, he is going to have to tread the ground lightly. 

Jeff Vahle, president of Walt Disney World Resort, said in a statement that the company "is ready to work within this new framework. We will continue to innovate, inspire and bring joy to the millions of guests who come to Florida to visit Walt Disney World each year."

Nevertheless, opponents of DeSantis view this move as an attempt to undermine the autonomy of a corporation that employs over 80,000 individuals just in Florida for political gain leading up to the 2024 US presidential election.

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