Residency pilot program established for certain racehorses, awards and grants required, money transferred, and money appropriated.

HF 1540 establishes a pilot program for thoroughbred racehorses in Minnesota, requiring a voluntary registry for horses that resided at a racetrack for at least 120 days in the prior year. Racetracks must award $750 per registered horse that races on a racing day during 2026-2027, with the state reimbursing racetracks for these awards. The program mandates grants for repurposing retired racehorses and mental health/education services for stable workers, allocating at least $500,000 annually for each purpose. A one-time $7 million transfer from the general fund funds the program, which expires on July 1, 2028.