(1) When a charging party or an aggrieved party refuses to comply with a request by the department for information or evidence reasonably necessary for the investigation, conciliation or litigation of the complaint, or fails to advise the department of a change of address causing the department to be unable to locate them, the department shall dismiss the case and issue a notice of dismissal and right to sue, or shall dismiss so much of the complaint as relates to that charging party or aggrieved party.

(2) If a respondent has been notified of a complaint and the department has requested information in the course of its investigation which the respondent fails to provide within the time specified, the department may take one or more of the following actions to complete its investigative responsibilities:

(a) request the commissioner to issue a subpoena;

(b) draw an adverse inference against respondent as to the evidence sought, if respondent willfully fails to produce information; and

(c) make a finding of merit of the complaint, engage in conciliation and, if unsuccessful, set the case for contested case hearing.