There was an update on April 21, 2022, at 02:24pm.

The Reedy Creek Improvement District that governs Walt Disney World was abolished by the Florida legislature as a punishment for Disney speaking out against a bill.

Walt Disney World

The Magic Kingdom Park is located at Disney World in Florida.

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The Florida House passed House Bill 3C Thursday in a 70-38 vote.

Reedy Creek and five other special districts were dissolved by the bill because they haven't been re-ratified.

Reedy Creek, which was established by the legislature in 1967, allows the resort to self-govern itself, with the special district having similar powers to local county governments.

Republican lawmakers in Florida turned against the resort's arrangement after the company opposed a bill that restricts classroom instruction on sexual orientation and gender identity.

The bill was passed without debate just three days after it was introduced.

Disney hasn't responded to a request for comment.

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The bill will be signed into law by DeSantis, who expanded the special session to pass it. Reedy Creek and the other special districts would be dissolved as of June 1, 2023 under the legislation. The bill is expected to end up in court once it is enacted. State law requires a majority of the district's owners to vote in favor of dissolving it.

Chief Critics

The special districts bill is being enacted by Republicans as political revenge against Disney that distracts from larger issues.

What We Don’t Know

What effect would dissolving Reedy Creek have? It is likely to make it more difficult for Disney when it comes to getting construction projects approved, though how it will work for local counties to absorb all the government function remains to be seen given how little analysis was done before the legislation was passed. Local counties will have to absorb Reedy Creek's debts, which total nearly $1 billion, even though Republican lawmakers behind the bill have claimed it shouldn't pose a tax burden to local residents.

Key Background

Disney, the largest single-site employer in Florida, is being punished for publicly opposing House Bill 1557, which banned any school instruction about sexual orientation or gender identity through the third grade.

Tangent

Republicans in Florida have sought to punish Disney by eliminating a carve-out in the social media censorship law it enacted last year for companies with theme parks, which was designed to exempt Disney. The bill passed the state legislature in a 70-38 vote. Disney is set to receive up to $570 million in tax breaks from the state in order to open a new office complex, but the state won't go after any corporate tax breaks.

How Florida Republicans are trying to take over Disney World.

Legislators in Florida will try to punish Disney for saying gay things.

How Florida Republicans could Punish Disney for Being Gay.