Disney World Settles with Florida After Its Opposition to ‘Don’t Say Gay’ Law

ORLANDO — The company that runs Walt Disney World reached a settlement Wednesday with appointees of Florida Gov. Ron DeSantis who were exerting controversial regulatory control over the huge tourism complex.

The settlement resolves some of the disputes that arose after Disney officials publicly denounced the Florida law endorsed by DeSantis known informally as the “Don’t Say Gay” law.

The law, formally titled the Parental Rights in Education Act, prohibits public education on sexual orientation and gender identity in early school grades.

Shortly after Disney employees criticized the law, the Republican-dominated Florida Legislature approved legislation to replace the special taxing district that includes Walt Disney World with a new taxing district called the Central Florida Tourism Oversight District.

The old taxing district, called the Reedy Creek Improvement District, operated since 1968 with a board of directors that was favorable to Walt Disney World and its development plans.

The Central Florida Tourism Oversight District created by state law on Feb. 27, 2023 was under control of the governor. DeSantis appointed a new board of directors.

The new taxing district resisted many of the Disney resort’s plans.

The changeover to the new district was followed by about 50 of 370 employees leaving for other jobs. They said the taxing district had become too political for them.

Walt Disney World sued in federal court, saying the new taxing district was political retaliation for its opposition to the new law and a violation of its employees’ First Amendment free speech rights.

A federal judge dismissed the lawsuit in January while saying in his order that Walt Disney World could not prove the law was intended to squelch its free speech rights. As a result, it lacked standing — or evidence of a special harm — to justify its lawsuit.

“Because Disney seeks injunctive relief, it must allege an imminent future injury … and it has not alleged facts showing that any imminent future appointments will contribute to its harm,” U.S. District Judge Allen Winsor in Tallahassee wrote in his decision.

Walt Disney World appealed.

Just before the switch to the new taxing district, members of the old board of directors signed over their regulatory control for design and construction at Disney World to the company. DeSantis called the contractual power turnover “11th hour covenants.”

The DeSantis appointees to the Central Florida Tourism Oversight District sued the company in Orlando to void the contracts, saying they were last-minute deals intended to undermine state authority.

The settlement announced Wednesday is intended to resolve the separate lawsuits by returning more regulatory influence to Walt Disney World but retaining some control for the governor.

The settlement replaces the Central Florida Tourism Oversight District board chairman appointed by DeSantis with a chairman more sympathetic to Walt Disney World. The board would return to operating like it had before the state takeover.

Walt Disney World officials said they were generally pleased with the settlement.

“This agreement opens a new chapter of constructive engagement with the new leadership of the district and serves the interests of all parties by enabling significant continued investment and the creation of thousands of direct and indirect jobs and economic opportunity in the state,” Jeff Vahle, the company’s president, said in a statement.

DeSantis said at a news conference in Orlando that “we have been vindicated on all those actions.”

“I’m glad that they were able to do that settlement,” DeSantis said. “Those 11th hour covenants and restrictions were never going to be valid. We knew that.”

A first order of business after the settlement is for the board to move ahead with a comprehensive development plan for Walt Disney World. It was put on hold by the litigation.

Disney hopes to add 13,000 jobs to its existing workforce of 75,000 employees with its development plan in central Florida. It would include $17 billion in investments over the next decade.

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