Each system is authorized to promulgate rules to properly administer the system and govern its own proceedings and to hold hearings as required by law. The term “agency” and the term “state agency” as defined by section 536.010 shall not include a system pursuant to this chapter with regard to the promulgation of rules or hearings required by law provided such system has established written procedures to assure that constitutionally required due process safeguards exist and apply to the promulgation of a rule or regulation that would otherwise constitute a “rule” as defined in section 536.010 and to a proceeding that would otherwise constitute a “contested case” as defined in section 536.010. Each system may delegate a hearing officer to hear all matters wherein a hearing is required by law.