Tallahassee is sending mixed signals these days. While Governor Ron DeSantis continues to trumpet that “Florida is Open for Business,” his administration has created a $20 million war chest specifically designed to sue corporations.
- Let that sink in for a moment. Our state is now setting aside taxpayer dollars to bring lawsuits against the very businesses Florida has courted.
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Background: DeSantis has consistently promoted Florida as being open and welcoming to businesses throughout his tenure:
- In May 2024, he signed legislation to streamline business practices and cut red tape, further demonstrating his commitment to making Florida business-friendly.
- Under DeSantis’ leadership, the Florida Department of State has worked to create opportunities for businesses and position Florida as an attractive place for international partnerships.
- This past January, DeSantis emphasized Florida’s efforts to attract businesses, saying, “It is important that we continue to strive to make Florida the ideal location for new and growing businesses”
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But then, on Wednesday, DeSantis and the state Cabinet, acting as trustees of the State Board of Administration, approved a resolution expanding their litigation capabilities against companies in which the state’s $200 billion pension fund invests.
Streamlining Litigation, Not Business
Gary Fineout of Politico reported that Chris Spencer, executive director of the State Board of Administration, tried to spin the resolution, saying it was the state of Florida being “a very active shareholder.” But it’s actually government-backed intimidation of corporate America. Spencer is a former DeSantis aide who now runs the state pension fund.
- The resolution even streamlines the process for suing companies by allowing lawsuits to commence with just a five-day notice to trustees rather than waiting for their approval. Talk about cutting red tape – but only when it benefits DeSantis’ power.
Attorney General James Uthmeier (DeSantis’ former chief of staff) made the administration’s intentions crystal clear: “If companies are going to go out and focus on radical, ideological politics and not getting revenues, then we need to hold them accountable.”
TRANSLATION: Run your business as we think you should, or we’ll see you in court.
Target in the Crosshairs
This follows Florida’s lawsuit against Target over its LGBTQ Pride marketing campaign, which the state claims caused financial losses to shareholders. Never mind that Target explicitly warned investors about potential boycott risks.
- DeSantis frames this aggressive stance as protecting retirees’ interests: “It’s the retired police officers, firefighters, teachers, who depend on this pension fund.” But one must wonder whether constant litigation serves those interests better than stable, predictable investment relationships.
WHY THIS MATTERS: Business leaders and Republican governors nationwide watch Florida closely. When a state with the 4th largest economy in the country signals it’s willing to use pension fund leverage to influence corporate behavior, it creates ripple effects far beyond state lines.
Companies considering relocation or expansion must now factor in potential legal exposure if their corporate policies don’t align with state political priorities. This raises questions for current Florida business owners about what future litmus tests might be applied to their operations.
The Fine Print
The irony is palpable. While declaring ESG (Environmental, Social, and Governance) is “basically dead,” Florida is creating its own politically-motivated investment criteria.
- Other investors—like you and me—pay attention to the market and shift our investments when we don’t like how a company is trending.
So is Florida truly “Open for Business”? Yes, but with a significant asterisk: *as long as you operate within the administration’s narrow definition of appropriate corporate behavior.
BOTTOM LINE
The message is clear for companies looking to expand or relocate: Florida welcomes your business. But if you step out of line with the governor’s vision, that welcome mat might quickly transform into a court summons.
- Whether a state government that actively threatens to sue corporations creates a stable, predictable business environment that drives long-term economic growth remains.