Hartford - Critics call them "puppy mills" and say the only way to shut down commercial out-of-state animal breeding facilities is to ban retail sales of dogs, cats and rabbits in Connecticut.

But the pet industry says it is already heavily regulated and eliminating retail sales would just feed an underground market of unscrupulous sellers.

Representatives from both sides of the often-emotional debate will be at the Legislative Office Building Wednesday, when a new state task force on pet shops convenes for the first time.

"It would be the best of all possible worlds if we had a statewide prohibition,'' said Lori Nicholson, one of main proponents of a proposed ban in Branford, where nearly 200 people attended a town meeting on the issue earlier this year. "That's the only way you can thread the needle on this problem."

The bipartisan panel was created by the General Assembly during the 2013 session after a group of lawmakers proposed a bill that would have banned the sale of pets in Connecticut unless the animals came from a rescue agency, a private breeder or an animal shelter. Supporters of such a ban said it is the only way to stop breeders who raise animals in sub-standard conditions.

The measure failed to come up for a vote in the face of strong opposition from the retail pet industry, which called it feel-good legislation that would cripple small businesses while doing nothing to protect animals.

Rep. Brenda Kupchick, R-Fairfield, sponsored the bill and said it had significant support. "But the pet store lobby worked really hard against it,'' said Kupchick, co-chairwoman of the task force. Any bill would have to be carefully worded to ensure it does not violate federal interstate commerce rules.

The task force is charged with coming up with recommendations that will be used to craft a bill to be raised in the 2014 legislative session, which begins in February. Before it completes its work, the panel will hold at least two public hearings, Kupchick said.

"Connecticut has the opportunity to be a leader here,'' she said.

The task force was seen by those on both sides as a suitable compromise. In addition to Senate Minority Leader John McKinney, Sen. Bob Duff, D- Norwalk, and Rep. Auden Grogins, D- Bridgeport, the panel includes representatives from the Connecticut Humane Society, the state veterinary association, a local animal breeder and the Pet Industry Joint Advisory Council, a trade group.

"We have zero-tolerance for anyone who harms animals in any way,'' said Charlie Sewell, the council's executive vice president, who will serve on the panel. "However, the proposal that was put on the table this year wouldn't have solved the problem. In fact, it would have exacerbated the problem by driving people underground to places like craigslist. Pet stores are heavily regulated in Connecticut and the public knows exactly what it's getting."

A movement to end the retail sale of dogs, cats and rabbits has taken hold in other parts of the nation. Los Angeles and San Diego have passed municipal bans on pet sales and, earlier this year, animal activists in Branford tried to do the same.

The pet industry says any new regulations should not just include brick-and-mortar pet shops but also Internet sellers and "adopters," who often fly under the radar of regulatory authorities.

"We're hoping that the task force will move forward on recommendations that go after the substandard breeders out of state,'' Sewell said, "and not force legitimate in-state businesses out of business, which is what a ban on pet sales would do.''

But Debora M. Bresch, a senior state director with the American Society for Prevention of Cruelty to Animals, who will be on the task force, said it is time to "look at the systematic inhumane sourcing of dogs and cats by Connecticut pet shops."

"The task force is an ideal forum to publicly highlight the cruel conditions in the breeding facilities that supply the state's pet shops," she said in a statement released Tuesday. "The ASPCA looks forward to working with Connecticut leaders to make task force discussions the basis of legislative action in the 2014 session."