Editor's Note: (This story was originally published on April 21, 2022. It has been updated to reflect Florida's 2023 special legislative session.)
(CNN) 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.
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."
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.
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.
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.
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."
Bob Chapek, the then-CEO of Disney, which employs 75,000 people in Florida, initially declined to condemn the law last year but reversed course after facing employee criticism. A company spokesperson then released a statement stating its goal was for the law to be repealed by the legislature or struck down in the courts.
"Florida's HB 1557, also known as the 'Don't Say Gay' bill, should never have passed and should never have been signed into law," the March 2022 statement said. The company said it was "dedicated to standing up for the rights and safety of LGBTQ+ members of the Disney family, as well as the LGBTQ+ community in Florida and across the country."