Except as otherwise provided in this section, the department shall promulgate rules to implement section 5(h) only, pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. However, any data reporting system and penalties for noncompliance established by the department must be narrowly tailored to the purposes described in section 5(h). To facilitate implementation of the Michigan reconnect grant program prior to final rules being adopted, the department may develop and administer the data reporting system under the Michigan reconnect grant program in accordance with its proposed rules or other policy or directive of the department established pursuant to this act.