01:00 AM EDT on Sunday, October 12, 2003

Spirits of the season Changes in state law will allow package stores in Rhode Island to open for the two Sundays before Christmas and one Sunday after Christmas from 10 a.m. to 6 p.m.

The relaxation of some of the last remaining "blue laws" follows efforts in other states, but it's still unclear how many retailers in Rhode Island will actually take advantage of the change.

Some mom-and-pop stores traditionally have wanted to stay closed on Sunday because it's the owners' only day off. But they may feel some competitive pressure this year from the big chains that will probably open on those Sundays.

Jeffrey Greer, associate director of the division of commercial licensing and regulation at the state Department of Business Regulation, said there haven't been many inquiries yet about the law change. He expects they will pick up with the approach of the holidays.

The Distilled Spirits Council of the United States, the trade association of producers and marketers, welcomed the change as "an early holiday present" for consumers.

The council said that in the last two years, New York, Delaware, Pennsylvania and Oregon have passed laws that allow Sunday sales of liquor, bringing the number of states that permit Sunday sales to 27.

Last week, the Massachusetts House of Representatives voted 63-to-81 against a bill that would have lifted the statewide ban on Sunday liquor sales and given local communities the authority to regulate the sales.

The state already allows package stores to sell alcohol on the Sunday before Thanksgiving and on each Sunday after that until the Sunday before New Year's Day.

In 1990, Massachusetts began allowing Sunday sales for liquor stores located in towns that, at least partially, fall within 10 miles of the border of New Hampshire or Vermont, which allows liquor stores to open on Sunday.

Fogarty in the Far East Lt. Gov. Charles J. Fogarty is scheduled to leave today for a weeklong trip to Taiwan. The trade mission, sponsored and paid for by the National Lieutenant Governors Association, includes several other lieutenant governors and NLGA officials.

In a press release, Fogarty said his itinerary includes "a meeting with Taiwan government officials to discuss with them a proposal by Electric Boat to build eight new diesel submarines."

The submarine proposal has been talked about for several years but remains fuzzy.

The Bush Administration said in 2001 that it would like to help Taiwan acquire the submarines. And Electric Boat's parent, General Dynamics, and Northrup Grumman Corp., may be interested in teaming up with a foreign shipbuilder to make the subs.

But any U.S. arms sales to Taiwan is a touchy issue in Beijing, where the administration is trying to develop a stronger relationship.

Electric Boat doesn't make diesel subs and would need help from foreign companies to build affordable boats for Taiwan.

In a statement released Friday, Electric Boat said, "Although the funding issues relating to the Taiwan submarine program remain unclear, Electric Boat is prepared to support all Navy requirements relating to the design and construction of these submarines."

Sickening health insurance premiums Add David Ferland, owner of Overland Supply, of Pawtucket, to the list of small business owners who have been shocked by the spike in health insurance premiums.

Ferland opened the notice from Blue Cross & Blue Shield last week to find the coverage for individuals had jumped to $333 a month from $170; and the family coverage increased to $892 a month from $484.

Ferland runs a janatorial supply and service business that employs 6 workers and has sales of about $5 million.

"This increase is ridiculous," he said. Ferland said he plans to switch to United Healthcare and, for the first time, require employees to contribute a copay.

There seems to be little relief on the way.

Towers Perrin, a consulting company, last week forecast that healthcare costs for U.S. employers will jump an average of 12 percent next year.

"Employers are facing yet another grim year of double-digit increases in healthcare costs and their employees are facing the harsh prospect of paying even higher out-of-pocket costs," said Jim Foreman, managing director of health and welfare at Towers Perrin.

An $8-million mortgage John and Jean Shufelt have borrowed $8 million from The Washington Trust Co. for the purchase and renovation of The Chanler at Cliff Walk, a 20-room hotel located on the oceanfront in Newport.

Of the total borrowed, $4 million is 80-percent guaranteed by the United States Department of Agriculture's Business and Industry program for historic preservation.

The 20-year-loan is at market rates, the bank said.

The Shufelts actually bought the hotel, long known as the Cliff Walk Manor, in June 2000. They also own the La Farge Perry House Bed and Breakfast, in Newport, and the Mission Point Resort, in Michigan.

No handstands by these bankers Bankers must have their fingers on the pulse of the economy to make money, and last week two of them said they are still waiting for clearer signs of a recovery.

"We're very fortunate we're not in the shape California is, but it's a tough economy," said John C. Warren, chairman and chief executive officer at Washington Trust Bancorp in Westerly.

"I don't think there's a business out there that would tell you it's not a challenging environment," he said.

Bank Rhode Island CEO Merrill Sherman was a bit more optimistic, but only a bit.

"Sales are up a bit, but I don't think anybody's doing handstands quite yet," Sherman said.

She said the strength of the Rhode Island housing sector is helping things, but she wondered how long it can list.

"For people who have lived through cycles, they're waiting for the other shoe to drop," Sherman said.

Pequot politics Michael Thomas, chairman of the Mashantucket Pequot Tribal Council, is being challenged for reelection by supporters of former chairman Skip Hayward.

Thomas, 35, has been chairman since January. He told The Day of New London that he wants a three-year term to continue pursuing his plans to build housing and seek other economic developments for the 700-member tribe.

Supporters of Hayward said they are forming a political party to oust Thomas and others, claiming they are wasteful and have abused their power.

It is unclear whether Hayward, a tribal councilor who is not up for reelection this year, will seek the chairmanship. Hayward was chairman for more than 20 years and led the tribe through the federal recognition process and the opening of Foxwoods Resort Casino near Ledyard.

The election is Nov. 2.

Another woman for Schwarzenegger File this under strongest woman CEO (by personality) meets strongest governor (by muscle mass).

Carly Fiorina, chairman and chief executive of Hewlett-Packard Co., the world's second-biggest computer maker, was appointed to the transition team for California's Governor-elect Arnold Schwarzenegger.

"We're honored to be playing an advisory role in this important transition," Fiorina said in a statement. "We believe a healthy business environment is critical to HP and every other California employer, large or small."

Schwarzenegger, whom some women have accused of unwanted sexual advances, was elected Tuesday in a special election to recall Governor Gray Davis. The Austrian-born actor is a former bodybuilder who starred in the Terminator film series as a robot assassin.

Fiorina was named by Fortune magazine as the most powerful woman in business for six straight years.

Odds & Ends ...Sir Freddie Laker showed up last week for breakfast at the State House with Gov. Carcieri to promote Laker Airways flights for vacationers from T.F. Green to the Bahamas. Next week, Laker is recognized by Queen Elizabeth as an aviation pioneer.

...Lincoln School will dedicate its new Murray Middle School at the Butler Avenue campus in Providence on Friday. The school is named for Suzanne Young Murray, Class of 1958. Murray graduated from Radcliffe College and is the wife of Terry Murray, former chairman and CEO of FleetBoston Financial Corp.

...Sign of the times. After all the headlines about Schwarzenegger's alleged groping of women, this placard was held up by a fan at pre-election rally: "What's all the fuss? Gray Grabbed My Assets."

w/ reports from David McPherson and Associated Press.

John Kostrzewa is the Journal's business editor. Share an anecdote or quip from the world of business and finance by sending it to pjbiz@projo.com