(1) NCHU categories are as follows:

(a) Category 2, consisting of all clients served in the pursuit of upland game birds and big game under combination licenses or in the pursuit of big game; and

(b) Category 3, consisting of all clients served in the pursuit of upland game birds, water fowl, and turkeys.

(2) In cases where a federal agency limits an outfitter's use of federal lands by some means other than NCHU, an outfitter is not required to have NCHU to perform services on those lands and may not use clients served on those lands in order to establish NCHU.

(3) An outfitter's total authorized NCHU includes both established NCHU and nonestablished NCHU.

(4) An outfitter's "client base" is the NCHU that has been established in accordance with this rule. NCHU is established only if one of the following applies to it:

(a) Board records show the outfitter was licensed on or before April 28, 2001, and had established the NCHU through use of it on or before December 31, 2004.

(b) Board records show the NCHU was obtained through an approved expansion request. However, if the approved expansion was granted to an outfitter newly licensed after April 28, 2001, then it was established only if used by that outfitter within five and a half years after the expansion.

(c) Board records show the NCHU was transferred to the outfitter from another licensed outfitter and was used in any license year during the five and a half years following the transfer. An outfitter may elect an early adjustment of NCHU by:

(i) submitting a completed form prescribed by the board for the purpose of establishing NCHU prior to the expiration of the five and a half year time period; and

(ii) consenting to an adjustment of the client base to reflect the highest number of clients served in any category in any license year, since the date of the transfer.

(5) An outfitter transferring NCHU to another outfitter must do so by completing a form prescribed by the board. Only NCHU that has been established in accordance with this rule may be transferred, and a transfer of established NCHU may not occur if the licensee holds any nonestablished NCHU.

(6) NCHU adjustments shall occur based on the most clients served during the five and a half years after the board's receipt of a valid form transferring NCHU.

(7) The records of the board comprise the official records of NCHU and each purported transfer of NCHU is invalid and void, unless and until the date that the proper and completed form is received by the board office.

(8) When NCHU is transferred to a license applicant, the transfer is not valid and the time period for establishing the NCHU does not begin until the date the application is approved.

(9) An outfitter who is subject to an adjustment of NCHU under 37-47-316, MCA, that would otherwise occur on or before December 31, 2014, shall have up to and including December 31, 2014, to establish the NCHU. The category definitions under this rule may be applied retroactively for purposes of establishing NCHU.

(10) Upon an adjustment of NCHU, all of the outfitter's nonestablished NCHU subject to the adjustment ceases to exist.

(11) When the board adjusts an outfitter's NCHU, the board will provide the outfitter notice and the right to a hearing in the manner provided in disciplinary matters.