(a) The hearing officer:

1. (1) Shall not be bound by the technical rules of evidence; and
2. (2) May admit any evidence if it is of a type commonly relied upon by reasonably prudent men and women in the conduct of their affairs.

(b) However, the hearing officer:

1. (1) Shall give effect to the rules of privilege recognized by the law;
2. (2) May exclude hearsay, incompetent, irrelevant, immaterial, or repetitious evidence; and
3. (3) May make rulings to protect witnesses from undue harassment or oppression.