Benzinga - Florida Republican Governor Ron DeSantis signed a bill on Monday, saying it would put an end to The Walt Disney Co’s (NYSE: DIS) self-governing district.
What Happened: The bill requires the Florida governor to appoint a five-member board to administer government services that the Disney district provides in its theme park properties in Florida, according to the report, reported Associated Press.
“Today the corporate kingdom finally comes to an end,” said DeSantis at the bill’s signing ceremony at Lake Buena Vista.
“There’s a new sheriff in town, and accountability will be the order of the day."
DeSantis’ move is reportedly a punishment for Disney’s opposition to the so-called “Don’t Say Gay” law.
Why It Matters: The new law will also change the district’s name from the Reedy Creek Improvement District to Central Florida Tourism Oversight District, noted the Press.
Tampa attorney Martin Garcia will reportedly be the chairman of the upcoming district’s governing board.
Reedy Creek was created in 1967 and carries more than one billion in bond debt. The new law leaves that obligation intact, according to the Press.
In April, DeSantis said his push to eliminate the corporate district was a “wake-up call” for the company.
The feud between DeSantis and Disney came to a boil over a Florida law that prohibits teaching classes related to gender identity or sexual orientation for students in kindergarten through third grade.
Price Action: On Monday, Disney shares closed 0.15% higher at $100.45 in the regular session and were mostly unchanged in the after-hours trading, according to Benzinga Pro data.
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