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Editor's Note: This story was originally published on April 21, 2022. It has been updated to reflect Florida's 2023 special legislative session.

Disney's Orlando-area theme parks and who will govern them are under renewed scrutiny in Florida - the latest in a yearlong spat between Republican Gov. Ron DeSantis and the state's largest private employer.

Lawmakers have returned to Tallahassee for a special session called in part to address what happens to Disney's special taxing district, called the Reedy Creek Improvement District, after they previously passed legislation dissolving it, which was supposed to take effect in June.

State Republicans on Monday unveiled a bill to turn over control of Disney's special taxing district to a five-member board hand-picked by DeSantis and rebrand Reedy Creek the "Central Florida Tourism Oversight District."

The move to take over Reedy Creek comes after DeSantis sparred last year with Disney over a bill to restrict certain classroom instruction about sexual orientation and gender identity.

Here's a look at the history of Reedy Creek, why it has become the focus of another special legislative session in Florida, and how proposed changes would give DeSantis more control.

What is Reedy Creek?

Reedy Creek is the name for the Reedy Creek Improvement District, a special purpose district created by state law in May 1967 that gives The Walt Disney Company governmental control over the land in and around its central Florida theme parks. The district sits southwest of Orlando.

At the time, the land was little more than uninhabited pasture and swamp, according to Reedy Creek's website. With the special purpose district, Disney took over responsibility for providing municipal services like power, water, roads and fire protection - but was also freed from dealing with legal red tape or paying taxes for services that benefited the broader public.

According to Richard Foglesong, the author of the book "Married to the Mouse: Walt Disney World and Orlando," Disney had previously had issues with the government of Anaheim, California, at its Disneyland park, completed a decade earlier. With those issues in mind, Disney pushed for a special purpose district in Florida that would give the company the ability to self-govern.

In exchange, Florida became the home base for Disney World and its millions of tourists.

"Florida needed Disney more than Disney needed Florida," Foglesong told CNN.

Today, the Reedy Creek special district encompasses about 25,000 acres in Orange and Osceola counties, including four theme parks, two water parks, one sports complex, 175 lane miles of roadway, 67 miles of waterway, and the cities of Bay Lake and Lake Buena Vista, its website says.

"The cooperation and commitment between the Reedy Creek Improvement District and Walt Disney World Company is as strong today as it was when the District was created in 1967," the Reedy Creek website states. "The result is an example of how a working partnership between business and government can be prosperous for both sides."

Why is this an issue now?

Last year, DeSantis challenged lawmakers to unravel the 55-year-old Reedy Creek Improvement Act as part of a special legislative session and ultimately signed a bill that would sunset the district on June 1.

Lawmakers left town without a plan to unwind a half-century of Disney control or for how to ensure Orange and Osceola county residents wouldn't be on the hook for funding Reedy Creek services or its $1 billion in debt. Amid the fallout, Reedy Creek told its bondholders that Florida could not dissolve the district without assuming its debts.

DeSantis repeatedly offered assurances that taxpayers wouldn't have to pick up the tab.

Now, GOP lawmakers have returned to the state Capitol and are trying to breath new life into the taxing district and keep many of its special powers. The final page of the 189-page bill proposed Monday states: "The Reedy Creek Improvement District is not dissolved as of June 1, 2023, but continues in full force and effect under its new name."

The Republican-controlled legislature is likely to pass the proposed changes within the next couple of weeks and the governor is supportive of them.

What are lawmakers proposing?

The bill, introduced Monday by state Rep. Fred Hawkins, seeks to limit the damage that could be done to Disney, one of the state's most vital tourism engines, and to taxpayers.

The measure guarantees that the changes to Reedy Creek will not affect the district's existing debt or any other contracts.

Instead of ending the district, the proposed legislation would rebrand it as the "Central Florida Tourism Oversight District" and curb some of its powers, including the ability to build an airport or a nuclear power plant.

The board, previously made up of Reedy Creek landowners with close ties to Disney, will instead become a five-member board of supervisors appointed by the governor. The bill makes clear that none of the appointees chosen by the governor can be recent Disney employees or their relatives, nor that of a competitor. The state Senate, where Republicans hold a super majority, would have final approval of the appointees.

"These actions ensure a state-controlled district accountable to the people instead of a corporate-controlled kingdom," DeSantis spokesman Jeremy Redfern said.

What has Disney said?

Disney said Monday it is watching the bill.

In a statement to CNN, Jeff Vahle, the president of Walt Disney World Resort, said the company is "monitoring the progression of the draft legislation, which is complex given the long history of the Reedy Creek Improvement District."

"Disney works under a number of different models and jurisdictions around the world, and regardless of the outcome, we remain committed to providing the highest quality experience for the millions of guests who visit each year," Vahle said.

What does this have to do with Florida schools?

Reedy Creek has been tied to the feud between DeSantis, who has widely been seen as a potential 2024 GOP presidential contender, and Disney over a measure that bans certain instruction about sexual orientation and gender identity in the classroom.

The "Parental Rights in Education" bill - which critics have dubbed the "Don't Say Gay" bill - was signed into law last March and prohibits schools from teaching children about sexual orientation or gender identity "in a manner that is not age-appropriate or developmentally appropriate." The legislation also allows parents to bring lawsuits against a school district for potential violations.

The law's vague language and the threat of parental lawsuits have raised fears that it will lead to discrimination against LGBTQ students and will have a chilling effect on classroom discussion. DeSantis spokesperson Christina Pushaw said on Twitter last year that the legislation would protect kids from "groomers," a slang term for pedophiles, and described those who oppose the law as "probably groomers."

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Why Disney has its own government in Florida and how control of it could change | CNN

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Editor's Note: This story was originally published on April 21, 2022. It has been updated to reflect Florida's 2023 special legislative session. Disney's Orlando-area theme parks and who will govern them are under renewed scrutiny in Florida - the latest in a yearlong spat between Republican Gov.

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In the mid-1960s, the Walt Disney World Company proposed building a recreation-oriented development on 25,000 acres of property in Central Florida. The property sat in a remote area of Orange and Osceola County, so secluded that the nearest power and water lines were 10-15 miles away. Neither Orange nor Osceola County had the services or the resources needed to bring the project to life.

In 1967 the Florida State legislature, working with Walt Disney World Company, created a special taxing district - called the Reedy Creek Improvement District - that would act with the same authority and responsibility as a county government.

Walt Disney World could then move ahead with its vision to turn 38.5 square miles of largely uninhabited pasture and swamp land, into a global destination resort that welcomes millions of visitors every year.

The new legislation said that landowners within the Reedy Creek Improvement District, primarily Walt Disney World, would be solely responsible for paying the cost of providing typical municipal services like power, water, roads, fire protection etc.

Local taxpayers, meaning residents of Orange and Osceola County, would not have to pay for building or maintaining those services.

The cooperation and commitment between the Reedy Creek Improvement District and Walt Disney World Company is as strong today as it was when the District was created in 1967. The result is an example of how a working partnership between business and government can be prosperous for both sides.

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In the mid-1960s, the Walt Disney World Company proposed building a recreation-oriented development on 25,000 acres of property in Central Florida. The property sat in a remote area of Orange and Osceola County, so secluded that the nearest power and water lines were 10-15 miles away.

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Using the third link, let's answer these questions together:
1. Where does this story come from? (News outlet) Is it a reliable source? Why or why not?
2. Is there bias in this article? Towards which side?
3. Do you think the facts were presented fairly? Why or why not?
4. Where does the article get it's information? (Blue links).

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Using the second link, lets' answer these questions together!
1. What kind of website is this? Why is that important (look at the address!)?
2. Looking at quotes like this one "The result is an example of how a working partnership between business and government can be prosperous for both sides." does this website have bias?

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Florida Gov. Ron DeSantis has his guns pointed at Disney World.

On Thursday, the Republican-held Florida legislature passed a bill seeking to dissolve a special district that allows the Walt Disney Company to act as its own government within the outer limits of Orange and Osceola counties. The bill passed the state Senate on Wednesday with a vote of 23-16 and sailed through the state's House of Representatives by a vote of 70-38.

The proposal was first introduced Tuesday by Republican state Sen. Jennifer Bradley, but opponents say it's really driven by DeSantis. Widely seen as a contender for the 2024 GOP presidential nomination, DeSantis is locked in a bitter and public feud with the entertainment giant over the company's denouncement of Florida's HB 1557 law last month. HB 1557, dubbed the "Don't Say Gay" bill, limits early education teachings on sexual orientation or gender identity.

Until recently, there had been no major public discussion about dissolving Disney's long-established special district, which it's occupied for 55 years, leading opposing senators and other critics of the bill to question its timing and the speed at which it's being pushed through.

State Rep. Randy Fine told CNBC's "Squawk Box" on Thursday that the bill isn't retaliatory but said "when Disney kicked the hornet's nest, we looked at special districts."

"People wanted to deal with the special district for decades," he said. "Disney had the political power to prevent it for decades. What changed is bringing California values to Florida. Floridians said, 'You are a guest. Maybe you don't deserve the special privileges anymore.'"

Fine said the bill was introduced to even the playing field in Florida for theme park operators. He noted that Disney's competition, Universal, SeaWorld and Legoland, do not have special districts to operate in.

Democrats in the state Senate, though outnumbered, came to the theme park's defense on Wednesday during a special session of the body.

"The Disney corporation is being attacked for expressing support for its many LGBTQ employees and customers," said state Sen. Tina Polsky, a Democrat who represents the 19th district of Florida, during the special session. "Are we really making this enormous decision based on spite?"

And it is an enormous decision.

The district in question is the Reedy Creek Improvement District, which was established in 1967. It was established by the Florida legislature so Disney could develop the infrastructure for Walt Disney World at no cost to Florida taxpayers.

None of this makes any sense. They just bit off way more than they can chew by trying to get the Reedy Creek district dissolved."

state senator for Florida's 13th district

The arrangement has allowed Disney to build theme parks, hotels and other tourist experiences within the Reedy Creek district with little to no oversight. The company also became the largest employer of Florida residents in the state and helped the Orlando area become one of the largest hubs for tourism in the U.S.

"I just don't understand what we are doing here," said Loranne Ausley, a Democrat who represents the state's 3rd Senate district, during Wednesday's session. "We are adding insult to injury by voting on something today that was proposed yesterday going after a private business that has literally made our state what it is, all because they have taken a position that the governor disagrees with."

The decades-old legislation also ensured that only the landowners within the district, primarily Walt Disney World, would be responsible for paying the cost of municipal services such as power, water, roads and fire protection.

For decades, taxpaying residents of Orange and Osceola counties have been spared maintenance bills for Disney park services.

Currently, Disney pays taxes to both counties as well as the Reedy Creek district. If DeSantis signs the bill into law, Reedy Creek, along with five other special districts established before November 1968, would be dissolved effective June 1, 2023.

Reedy Creek, as a special district, has no representatives in the state legislature.

Dissolving the district would mean Reedy Creek employees and infrastructure would be absorbed by the local counties, which would then become responsible for all municipal services. The counties would collect the tax revenue Disney currently pays the Reedy Creek district, but would also be saddled with the district's liabilities. Namely, its debt.

Reedy Creek historically operates at a loss of around $5 million to $10 million each year, according to its financial reports. But since Disney can subsidize its own operations with theme park revenue, that debt doesn't have much impact on its bottom line.

According to lawmakers, there's around $1 billion in debt on the balance sheet that taxpayers would become responsible for should the special district get absorbed, leading to higher taxes.

"No one wants to take that amount of debt up," Linda Stewart, a Democrat who represents Florida's 13th Senate district, told CNBC on Wednesday. "None of this makes any sense. They just bit off way more than they can chew by trying to get the Reedy Creek district dissolved ... This is a major, major issue that I don't think it will be, in the end, very successful."

Taxpayers would also be on the hook for any municipal improvements that Disney currently pays for, including road work.

In 2019, for example, Disney's Orlando neighbor Universal partnered with Orange County and the state to build a 1.7-mile extension to Kirkman Road between Carrier Drive and Universal Boulevard to accommodate the company's new park Epic Universe.

That project cost an estimated $300 million, more than half of which Universal footed. The company paid $160 million, leaving Orange County to pay $125 million and the state to pay around $16 million.

The tab for similar projects at Disney could easily pile up.

Disney declined to comment on the legislature's efforts, but the dispute is likely to end up in court, according to David Ramba, executive director of the Florida Association of Special Districts.

Ramba said he has dissolved a number of special districts, but never any that didn't want to be dissolved and noted that "a lot of lawyers are going to get paid" as the parties work to sort out the operational implications of this bill.

Florida law dictates that special districts created by the legislature can only be dissolved with a majority vote of the district's landowners. For Reedy Creek, that's the Walt Disney Company.

"Nothing is going to happen," said Jason Pizzo, a Democrat who represents the state's 38th Senate district, during the special session Wednesday. "Everyone in this room knows this is not going to happen. I'm just tired of missing my kid's baseball games for stuff we know is not going to happen."

Pizzo was among several state senators who spoke out against the bill ahead of the Senate vote Wednesday. Many expressed frustration during discussion on the legislature floor, calling the legislation a "revenge bill" and "political theater."

"[The governor] wants to prove a point," Stewart said. "He wants to prove he's more powerful, but I don't think he's more powerful than Disney."
Disclosure: NBCUniversal is the parent company of Universal and CNBC.

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Florida Republicans vote to dissolve Disney's special district, eliminating privileges and setting up a legal battle

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Florida Gov. Ron DeSantis has his guns pointed at Disney World. On Thursday, the Republican-held Florida legislature passed a bill seeking to dissolve a special district that allows the Walt Disney Company to act as its own government within the outer limits of Orange and Osceola counties.

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Using the first link, let's answer these questions together:
1. Both the state senate and house of representatives voted, what branch of government are they?
2. The bill is now going to the governors office, what branch of government are they?
3. How long has the special district been active?
4. What does the news story say is the reason the special district is being dissolved?
5. The decision is said to be going to court, what branch of government are they?
6. Is there a way the Republicans are voting (side)? Democrats?

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Gov. Ron DeSantis pledged Thursday that Disney will live under the same laws as everybody else in Florida on the " The Ingraham Angle Town Hall" in Orlando, Florida.

"It just simply ends with them being treated the same as every other company in Florida," DeSantis told Laura Ingraham. "They're going to follow laws. They're not going to have their own government. They're going to pay their debts, pay their taxes."

DeSantis pointed out that during the COVID-19 pandemic, he saved thousands of jobs in Orlando.

"If you had a governor like in California, these people would have lost their jobs because Disneyland was closed for over a year," he said. "I did it because I cared about people's jobs and their livelihoods, but in the process of doing that, we made Disney millions and millions of dollars because we had sensible policies during COVID."

The governor took a jab at the company's special Florida district, saying that Disney is "paying themselves" when they pay to Reedy Creek.

"They are Reedy Creek. It's a fiction. They are paying money to run their operations ... they will continue paying money to run their operations, and that will be true if the state is in charge of a district, if it's dissolved to the locals, it doesn't matter. That is going to continue to happen."

DeSantis concluded by ripping into Disney's response to the Parental Rights in Education bill, which drew a standing ovation from the crowd.

"I am not comfortable having one company with their own government and special privileges, when that company has pledged itself to attacking the parents in my state," he said.

"When that company has very high up people talking about injecting pansexualism into programing for young kids, it's wrong. Walt Disney would not want that. And so get back to the mission. Do what you did great. That's why people love the company, and you've lost your way. Maybe this will be the wakeup call that they need to get back on track."
WATCH THE FULL SEGMENT BELOW:

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DeSantis blasts Disney execs' attack on parents: 'Walt Disney would not want that'

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Gov. Ron DeSantis pledged Thursday that Disney will live under the same laws as everybody else in Florida on the " The Ingraham Angle Town Hall" in Orlando, Florida. "It just simply ends with them being treated the same as every other company in Florida," DeSantis told Laura Ingraham.

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Using the fourth link, let's answer these questions together:
1. Where does this story come from? (News outlet) Is it a reliable source? Why or why not?
2. Is there bias in this article? Towards which side?
3. Do you think the facts were presented fairly? Why or why not?
4. Where does the article get it's information? (Blue links).

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You should find another news article that deals with this current event.
Answer the following question in relation to your news article:
1. Where does this story come from? (News outlet) Is it a reliable source? Why or why not?
2. Is there bias in this article? Towards which side?
3. Do you think the facts were presented fairly? Why or why not?
4. Where does the article get it's information? (Blue links).