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Costco Wholesale stores in Washington will begin collecting signatures next week to put an initiative on the ballot in November that would take the state out of the liquor business.

Initiative 1100 would allow businesses in good standing that currently sell beer and wine to also sell liquor, and it would eliminate price controls and allow volume discounts.

The push comes more than two years after Issaquah-based Costco lost most aspects of a court battle to change the state’s beer- and wine-distribution rules.  Several legislative efforts aimed at overhauling the system failed to make headway.

The Washington Beer & Wine Wholesalers Association does not have an official position on the initiative, but that group’s executive director personally supports keeping the current regulatory system.

Small grocery stores may like the idea of selling liquor but some say Initiative 1100 would price the smaller stores out of business.

Others are concerned that the state needs the revenue generated by its liquor stores, about $655 million in fiscal 2008 and 2009. The state runs more than 160 stores, and an additional 155 are owned by businesses that contract with the state.

Costco officials say the state could raise liquor taxes to make up for that loss.

To make the November ballot, the initiative needs almost 242,000 signatures by July 2.