A proposal by the Florida Legislature would establish a state-run board to control Disney's Reedy Creek Improvement District and mandate that the company pay off all of its debts, according to GOP Gov. Ron DeSantis' office.
A public notice released Friday stated that legislation regarding Reedy Creek was being proposed.
"The corporate kingdom has come to an end," DeSantis Communications Director Taryn Fenske told Florida's Voice. "Under the proposed legislation, Disney will no longer control its own government, will live under the same laws as everyone else, will be responsible for their outstanding debts, and will pay their fair share of taxes."
According to officials in DeSantis' office, the state-run board was proposed because it was questionable whether local governments would prevent Disney's debts from being absorbed by taxpayers if the special district were dismantled. The state-controlled board would be responsible for ensuring that the company's debts were not shifted to taxpayers.
"Imposing a state-controlled board will also ensure that Orange County cannot use this issue as a pretext to raise taxes on Orange County residents," Fenske said.
Dane Eagle, who oversaw special districts when he served as the Department of Economic Opportunity secretary for the DeSantis administration, told Florida's Voice, "So this is about creating an even-level playing field.
"No company is bigger than Florida itself or bigger than the taxpayers and the governor made that clear from day one."
Florida Republicans passed legislation in April to strip Disney of its self-governing powers and dissolve the Reedy Creek Improvement District. The 1967 Reedy Creek Improvement Act allows Disney to govern itself in areas such as building codes, zoning, taxes and electricity. Disney's special district is set to dissolve by June 1, 2023.
The measure in April to strip Disney of its self-governing status followed the company's wading into the culture wars when it vowed to repeal the Parental Rights in Education Act, which was championed by DeSantis.
Florida Republicans said Disney's special district was unconstitutional because it was set up before the Florida Constitution was adopted in 1968.
Democrats expressed concerns about the impact dismantling Reedy Creek would have on taxpayers and said Republicans should not clap back at a company for voicing an opinion.
According to Florida's Voice, the Reedy Creek Improvement District has incurred substantial debt, up to $1.1 billion. DeSantis' office has reassured Floridians for months that Disney would pay all of its debts.
"Don't let anyone tell you that somehow Disney is going to get a tax cut out of this," the governor said in April. "They are going to pay more taxes as a result of it."
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