(1) A proposed order may be made following informal proceedings, which may be conducted where the parties to a contested case jointly waive a formal proceeding, where the default of a party is entered, or where informal proceedings are appropriate following the imposition of sanctions upon a party.

(2) When informal proceedings are used the hearing examiner shall give parties an opportunity to present evidence at a convenient time and place, using fair procedures, to present to the hearing examiner:

(a) Written or oral evidence in opposition to the department determination of the sufficiency of evidence in support of a complaint, or other department action;

(b) A written statement challenging the grounds upon which the department or the commission has chosen to justify its action or inaction; or

(c) Other written or oral evidence relating to the contested case.

(3) During informal proceedings the hearing examiner may receive and consider evidence of a type commonly relied upon by reasonably prudent persons in the conduct of their affairs, but may not receive or consider evidence which is irrelevant, immaterial, or unduly repetitious. Hearsay evidence may be received and considered to supplement or explain other evidence, but such hearsay evidence may not be considered to support a finding unless it would otherwise be admissible over objection in civil actions or under the Montana Rules of Evidence.

(4) The hearing examiner may receive the department record or investigative file in evidence in informal proceedings, subject to objections or requests to strike hearsay evidence or other evidence not permitted under (3) .

(5) Telephonic hearings may be conducted during the course of informal proceedings.