Woodinville,Wash. -- The debate about the potential privatization of the Washington state liquor trade is highlighting fault lines in the state’s fast-growing wine industry. Controversy triggered by I-1100, a November ballot initiative spearheaded by Issaquah, Wash.-based Costco Wholesale Corp. and supported financially by Wal-Mart and Safeway through Modernize Washington, is pitting the Washington Wine Institute and some small wineries against the Family Wineries of Washington State and some of its member wineries.