Hearings shall be conducted by the director who may administer oaths, rule upon offers of proof and objections, and take such other action as may be necessary.

The director shall not be bound by formal rules of evidence as observed in courts of law but shall exclude irrelevant, immaterial, or unduly repetitious evidence. The burden of proof and of proceeding with the evidence shall be on the department, and every party shall have the right to compulsory process, to representation by counsel of his or her own choosing, and to cross-examination of and confrontation by witnesses against him or her. The final determination of the director may be appealed, and the appeal shall be in accordance with the Administrative Procedure Act.