(1) Each time the commission allocates tags, except as provided in subsection (3) of this section, the board shall:
(a)  Designate allocated tags using a formula that prioritizes an individual outfitting operation’s use, including the transfer of allocated tags previously designated to it;
(b)  Designate any remaining or additional undesignated allocated tags based on each outfitting operation’s base allocation number in comparison to its use of previously designated allocated tags and in proportion to other outfitting operations;
(c)  Incorporate the base allocation number into the formula used to designate allocated tags to each outfitting operation; and
(d)  When reasonably practical to do so, designate allocated tags before the date on which nonallocated tags become available for sale to nonresidents for the hunt in which tags are allocated.
(2)  An individual outfitting operation’s base allocation number is computed as follows:
(a)  In capped hunts, the average of the two (2) calendar years preceding the date of allocation of all outfitted hunter tag use history in the hunt with the most similar framework to the hunt for which the allocated tag is being designated.
(b)  In controlled hunts, the highest year within the two (2) calendar years preceding the date of allocation of all outfitted hunter tag use history in the controlled hunt or hunts with the most similar framework to the hunt for which the allocated tag is being designated.

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(3)  If the commission allocates tags more frequently than biennially, the board will designate allocated tags only for the hunts for which the fish and game commission adjusted the number of allocated tags.
(4)  If the commission reduces the number of allocated tags for a hunt from the immediately preceding big game season setting for that hunt, the board will designate allocated tags as set forth in this section, and then it will reduce each outfitting operation’s designation by the same percentage as the percentage reduction to the total number of allocated tags, if necessary.
(5)  If the commission allocates tags for a newly capped or controlled hunt, the board will designate allocated tags for that hunt proportionately based on each outfitting operation’s base allocation number.
(6)  The board may adjust the number of tags that would be otherwise designated to an outfitting operation for a hunt based upon a request and demonstration of hardship by one (1) or more outfitting operations authorized for that hunt, upon notice and an opportunity to be heard by all affected outfitting operations.
(7)  Prior to turning back unsold allocated tags to the department of fish and game, a pool for these tags will be established within each hunt. These pooled tags will be accessible to other licensed outfitters in the same hunt for periods of time specified by the board.
(8)  The board will notify licensees of the number of allocated tags designated to its operations and the basis for designation.