(1) A party that timely disputes a civil penalty or fine may, after first satisfying the mediation requirements of this rule, have a contested case with the department. The contested case must be held in accordance with the Montana Administrative Procedure Act and will be conducted by the department's Office of Administrative Hearings.

(2) The advisory council shall act as the mediator of disputed civil penalties or fines. The mediator shall attempt to bring the parties to mutually acceptable resolution of the dispute.

(3) Mediation is a private, mandatory, informal, and nonbinding proceeding. Statements made during the mediation process, and the recommendations of the mediator, are not admissible in any other proceeding, and may not be offered in evidence in any other proceeding.

(4) The department shall promptly notify the advisory council of disputes arising under 69-4-524, 69-4-525, or 69-4-529, MCA. The mediation must be conducted within 45 days of the council being notified.

(5) Mediation may be conducted by a majority of the advisory council, or it may be delegated by the council to a subset of the council to act as the mediator.

(6) Mediation is conducted by telephone, unless the parties and the mediator agree to in-person mediation, and the parties waive the 45-day requirement.

(7) The mediator shall issue a written report and recommendation to the parties within 15 days of the mediation.

(8) If the parties agree to a resolution of their dispute during mediation or within 20 days after the report and recommendation is sent to the parties, the department shall notify the advisory council that the matter has been resolved.

(9) If the party that disputes the civil penalty or fine does not agree to resolve the matter, it must notify the department within 20 days of the mediation report and recommendation being issued that the department must schedule a contested case.

(10) Failure of a party to timely notify the department to schedule a contested case acts as waiver of the right to a contested case.

(11) Mediation conducted under this rule may be guided by, but is not bound by, the mediation procedures and rules applicable to workers' compensation matters, pursuant to Title 39, chapter 71, part 24, MCA, and ARM Title 24, chapter 28.