A California winery says the government is forcing it to fund speech it opposes, and now it’s fighting back. With help from the Goldwater Institute, Flying Goat Cellars is challenging a Santa Barbara County mandate that requires wineries to pay a 1% fee and join a private marketing association against their will.
For more than 25 years, through hard work and sacrifice, Flying Goat founders Norm Yost and Kate Griffith have built their small winery into one of the region’s most innovative producers. Now, a new county ordinance threatens not only their independence but their survival.
In February 2025, the Santa Barbara County Board of Supervisors approved the creation of a wine “Business Improvement District,” or Wine BID, requiring wineries to pay a 1% assessment on sales to fund regional marketing efforts. The ordinance also forces wineries to become members of the Santa Barbara County Vintners’ Association, which controls how the money is spent.
As Flying Goat Cellars argues, the mandate violates core constitutional protections by forcing business owners to subsidize speech and associate with a private organization they do not support.
“This is the most challenging time in the history of the wine industry since Prohibition,” said Flying Goat co-owner Kate Griffith. “Santa Barbara County is adding insult to injury by forcing us to pay a 1% fee and join an association against our will. The timing could not be worse for small wineries like ours.”
The Goldwater Institute sent a formal legal letter to Santa Barbara County today urging officials to amend the ordinance and make both the fee and association membership voluntary. If the county refuses, the Institute is prepared to pursue further legal action.
“The Supreme Court has made clear that the government cannot force Americans to subsidize speech they disagree with,” said Goldwater Institute Senior Staff Attorney Adam Shelton, who represents Flying Goat Cellars. “It has also recognized a fundamental right not to be compelled into private associations. Santa Barbara County’s mandate violates both principles.”
In addition to raising First Amendment concerns, the mandated fee also violates the Constitution’s Takings Clause by redirecting private revenue to a private organization without a legitimate public use.
The financial stakes are significant. The mandate is expected to generate roughly $1.65 million annually for the Vintners’ Association. But Flying Goat Cellars says the case is about more than dollars and cents — it’s about independence and fairness for small businesses.
“I’m not opposed to partnerships or marketing,” said Flying Goat founder Norm Yost. “But as an independent business owner, I am opposed to being forced into an association I don’t necessarily agree with and paying fees that may not benefit my business. I just want to make wine I love and connect with customers on my own terms.”
Wineries across California are already facing mounting pressures, including rising production costs, increased competition, and shifting consumer habits. Flying Goat Cellars says the county’s mandate could accelerate the squeeze on smaller, independent producers.
At stake is a broader constitutional principle: The government should not be able to compel Americans to fund speech or join private organizations against their will. That’s why the Goldwater Institute is urging Santa Barbara County to repeal the mandate — and why it is prepared to go to court if necessary to defend the First Amendment rights of business owners everywhere.
Read Goldwater’s letter to the Santa Barbara County Board of Supervisors here.
