State Representative Rod Froelich and Senator Joe Miller have put forward a bill to the state's legislative assembly proposing that the Department of Commerce conduct the study during 2009-10.
They suggest that the department could find out if any existing processing facilities in the state could be converted to the use, and propose that the department determine "the nature and scope of existing and potential markets, both domestic and international".
No slaughter plants currently operate in the United States, following the closure of the last three under state laws.
Animal welfare groups are pushing hard to have a federal law passed not only banning slaughter, but preventing the exporting of horses for the same purpose.
At present, tens of thousands of horses are being trucked into Mexico and Canada annually for slaughter.