(1) When the commission sets a limitation or quota for the number of hunting licenses to be issued in any hunting district or other designated area, resident applicants shall receive at least 90% of the total hunting licenses to be issued for that game species in that district. When the number of resident applicants totals less than 90% of the quota for that district, all resident applicants shall receive a hunting license for that game species.

(2) The remaining licenses will be issued to the nonresident applicants for that district by drawing. Then, any remaining licenses for that district shall be sold as surplus or over the counter.