Local business leaders as well as three of four candidates for state Senate met with representatives of the Business and Industry Association on Wednesday to discuss New Hampshire's business climate.

The BIA will wrap up the last of 11 such roundtables on Friday as part of an efforts to give the business community a voice in establishing a proactive legislative and regulatory agenda for the 2011 legislative session.

During the forum held at Meredith Village Savings in Laconia, BIA President Jim Roche explained the event was designed for business leaders to talk about their top challenges and concerns and help shape the BIA's legislative and regulatory agenda for the upcoming year. He said the roundtables are the first of four steps the BIA will take as it works to develop its 2011 Public Policy Priorities.

Come July, Roche said, the BIA will use information gleaned during the roundtables to produce a survey that will be mailed to members asking them to prioritize a series of proposals. In August, the survey results will then be aligned with the BIA's five policy committees. Their recommendations will then be forwarded to the full board that will sign off and approve the BIA's Public Policy Priorities in September.

The BIA currently has four registered lobbyists, three of which are at the Statehouse every day, according to Dave Juvet, senior vice president of the organization.

Improving traits for area business that local leaders identified included the presence of strong community and local banks giving access to capital, that the Lakes Region remain a strong tourism destination and that there has been an increase in the number of "buy local" consortiums.

Things that are having a negative effect on local business included the uncertainty regarding the state budget and fiscal policies and the rising cost of health care and health insurance.

"It doesn't make sense legislatively how the budget process is run," said Henry Lipman of LRGHealthcare, which owns and operates Lakes Region General Hospital and Franklin Regional Hospital.

Lipman lamented that the legislature spent time determining what should be the state drink and saved important budgetary decisions for the eleventh hour with little public vetting.

"It's dysfunctional. We need a more rational and predictable budget process," he said.

Lipman also faulted the state for taking federal Medicaid money and not spending it for its intended purpose, rather applying $230 million to the general fund.

Amy Landers, the executive director of the Lakes Region Association, said one problem that is plaguing local part-time workers is their inability to qualify for health insurance. She noted some workers spend their winters at Gunstock Mountain Resort, for example, and their summers working at a local motel. While they are working 12 months out of the year they still can't get insurance, she said, urging the BIA to look at a legislative solution.

Jim Forsythe of Laconia, a GOP candidate for the District 4 senate seat, said the Regional Greenhouse Gas Initiative is driving up electricity costs for business. He also expressed concern about the bevy of new taxes levied on business, including the local option rooms and meals tax, the LLC tax and the campground tax that has since been repealed.

George Hurt of Gilford, who is also running for the District 4 seat as a Republican, told the BIA that the state needs more competition in the health insurance industry and that health insurance, like life insurance, should be available across state lines.

"Anthem drives the rates even though there are four or five other companies in the state," Hurt said.

Other things hurting local business that were identified during the forum were aggressive audits by the Department of Revenue Administration as well as major fine leveling by the Department of Labor, participants said.

"Confidence is a huge element of recovery," said Tom Clairmont, president and CEO of LRGHealthcare. He said as a result of the sour economy and high insurance rates many people are putting off a trip to the doctor.

"People come in to the hospital late and get a diagnosis of cancer and get put in hospice instead of a potential for recovery," he said.

Andrew Hosmer of Laconia, a Democrat seeking the District 4 Senate seat who owns the AutoServ automotive group, said he believes consumer confidence is trending upward.

Action steps the roundtable identified to help solve some of the identified problems included creating a study commission to improve the state budget process and opposing immediate or retroactive taxes. Landers said businesses need a year or two of notice before they can be expected to shoulder an added operating expense.

The roundtable also recommended the BIA pursue the repeal of health care mandates such as increasing coverage and allow for purchasing of health insurance across state lines.

Hurt also suggested that outside audits be done of state agencies to determine efficiencies. Lastly, the group said it was important to business that the state employees' retirement system be reformed and that a sunset review of regulatory procedures also be conducted.

The roundtables will conclude on Friday with forums in Berlin and North Conway.