(1) An agency of state government or of the Montana university system may not employ, on a full-time or part-time basis, in a permanent or temporary position, an individual who has failed to comply with the registration requirements of the federal Military Selective Service Act, 50 App. U.S.C. 451, et seq. However, this prohibition does not apply to an individual who:
(a) by a preponderance of the evidence shows that the failure to register was not done knowingly or willfully; or
(b) is exempt from registration under the provisions of the Military Selective Service Act.
(2) The department of administration and the board of regents shall adopt rules to implement this section.