Ariz. Rev. Stat. § 3-1721
D. On failure of the owner to be awarded immediate, expense-free possession of the equine pursuant to subsection C of this section, the department shall either sell the equine at public auction or, if the equine's condition makes its sale impractical, dispose of the equine in the most humane manner possible. The department shall deposit the proceeds of the sale in the livestock custody trust fund established by section 3-1377 for distribution in the following priority: