i
nature of the case
Plaintiff, Citizens for Common Sense in Government, is a ballot question committee that opposes a ballot proposal sponsored by Let Local Votes Count (llvc). The Michigan Municipal League (mml) is a pri *46 vate nonprofit corporation established to advise and lobby for cities and villagеs in Michigan 1 The mml funds, its activities largely from fees assessed against its member cities and villages. 2 The mml allegedly supports and has expended funds to support the llvc’s ballot proposal 3 regarding legislation that affects local governments.
Section 57 of the Michigan Campaign Finance Act (mofa), MCL 169.257; MSA 4.1703(57), prohibits public bodies, such as the mml’s membership, from direсtly spending money to influence a ballot proposal. Plaintiff contends that the mml expenditures to influence this ballot proposal, which plaintiff claims comes in part from money donated by public bodies, provides the vehicle for cities to do indirectly that which § 57 prohibits them from doing directly.
Fourteen years before the Legislature passed § 57, the Attorney General issued an opinion that the MML did not violate state law by spending funds to influence a ballot proposal. 4 Plaintiff says that the mml’s conduct violates § 57, but opines that because of OAG, 1981-1982, No 5882, p 137 (April 22, 1981), the Secretary of State will not enforce the “law” against *47 the mml because the Secretary of State must abide by the Attorney General’s 1981 erroneous opinion.
We will not address the merits of what plaintiff regards as the ultimate issue (Does the mml’s expenditures violate § 57’s prohibitions against municipalities expending public funds to influence ballot proposals?), because this Court lacks jurisdiction to decide this issue under the present circumstances.
This Court lacks jurisdiction because (1) the mcfa provides the exclusive procedure for enforcement of its provisions through the Secretary of State and until these avenues are tried and exhausted, this Court has no jurisdiction and (2) under Michigan law, there is no case or controversy, but only mere speculation by plaintiff that the Secretary of State will automatically defer to the 1981 opinion of the Attorney General. Under the MCFA and the Administrative Procedures Act (apa), MCL 24.201 et seq.-, MSA 3.560(101) et seq., plaintiff, and this Court, must give the Secretary of State an opportunity to interpret and enforce § 57, and this Court must resist plaintiff’s invitation to presume how the Secretary of State or the Attorney General may opine or act in light of § 57.
n
FACTS AND PROCEEDINGS
Plaintiff is a ballot question committee that opposes a ballot proposal to amend the Michigan Constitution to require a two-thirds vote of the Legislature on any legislative action that “intervenes” in *48 areas of “municipal concern.” 5 The mml, which is not a party to this action, is a nonprofit corporation whose membership consists of cities and villages. 6 The mml’s purpose, in part, is to encourage legislation beneficial to the municipalities of Michigan. The mml funds its activities primarily with dues that are assessed on the basis of the population of each member city and village. 7 The mml supports the ballot proposal and, according to plaintiff, has illegally expended funds to that end.
In 1981, the Attorney General issued an opinion, OAG No 5882, in which the Attorney General concluded that the mml may, subject to the requirements of the MCFA, expend funds in connection with the passage or defeat of a ballot proposal. After the release of that opinion, the Legislature amended the MCFA,
Plaintiff contends that the mml’s expenditure of funds violates § 57 of the act because cities pay dues to the mml and the mml expends some of its funds to support the ballot issue in contention. 9 Plaintiff also asserts that because state agencies are required to follow Attorney General opinions, the Secretary of State will follow OAG No 5882 and will not enforce § 57 against the mml. Rather than seek redress under the mcfa or pursuant to the apa, plaintiff filed in the circuit court an action seeking a declaratory ruling that “1981 OAG 5882 does not accurately state the law and that the Secretary of State is not bound by, and may not follow, this opinion.”
The parties filed cross-motions for summary disposition. 10 The circuit court granted defendants’ motion, ruling (1) that the MCFA did not create a private right of action, (2) that plaintiff had administrative remedies available that had not been pursued, and (3) that because plaintiff’s action was based on speculation concerning how the Secretary of State would rule, there was no actual controversy on which the court could properly pass. The court denied plaintiff’s motion for summary disposition.
m
STANDARD OF REVIEW
Whether the trial court has subject-matter jurisdiction is a question of law that this Court reviews de
*50
novo.
Rudolph Steiner School of Ann Arbor v Ann Arbor Charter Twp,
The burden of establishing jurisdiction is on the plaintiff.
Universal Am-Can Ltd v Attorney General,
IV
ANALYSIS
This Court lacks jurisdiction because (1) plaintiff failed to exhaust the exclusive administrative remedies of the MCFA and (2) under Michigan law, there is no case or controversy.
A
EXHAUSTION OF REMEDIES
This Court lacks jurisdiction because plаintiff failed to exhaust its administrative remedies. Subsection 15(9) of the MCFA provides as follows:
*51 There is no private right of action, either in law or in equity, pursuant to this act. The remedies provided in this act are the exclusive means by which this act may be enforced and by which any harm resulting from a violation of this act may be redressed. [MCL 169.215(9); MSA 4.1703(15)(9).]
The Legislature has directed the Secretary of State to promulgate rules and issue declaratory rulings to implement the MCFA pursuant to the APA. MCL 169.215(l)(e); MSA 4.1703(15)(l)(e). The APA provides a formal procedure for submitting requests for declaratory rulings and governing treatment of any such requests.
Greenbriar Convalescent Center, Inc v Dep’t of Public Health,
Though plaintiff never attempted to comply with the statute,
11
plaintiff argues that it was not required tо exhaust the administrative remedies promulgated in the MCFA because to do so would “require a useless effort.” Plaintiff argues that seeking such a ruling would be futile because the Secretary of State is
*52
required to follow OAG No 5882. See
Michigan ex rel Oakland Co Prosecutor v Dep’t of Corrections,
Our Supreme Court has stated that “administrative law dictatеs that courts move very cautiously when called upon to interfere with the assumption of jurisdiction by an administrative agency.”
Judges of the 74th Judicial Dist v Bay Co,
A discussion of the purpose of the doctrine of exhaustion of administrative remedies, and the “futility” excеption thereto, is found in
Int’l Business Machines Corp v Dep’t of Treasury,
Exhaustion of administrative remedies serves several policies: (1) an untimely resort to the courts may result in delay and disruption of an otherwise cohesive administrative scheme; (2) judicial review is best made upon a full factual record developed before the agency; (3) resolution of the issues may require the accumulated technical compe *53 tence of the agency or may have been entrusted by the Legislature to the agency’s discretion; and (4) a successful agency settlement of the dispute may render a judicial resolution unnecеssary. See Judges of the 74th Judicial District v Bay Co,385 Mich 710 , 727-728;190 NW2d 219 (1971).
Exhaustion of administrative remedies is not an inflexible condition precedent to judicial consideration, however, and will not be required if review of the agency’s final decision would not provide an adequate remedy, MCL 24.301; MSA 3.560(201), i.e., if it would run counter to the policies which underlie the doсtrine.
According to plaintiff, it would have been futile to pursue administrative remedies here because the Secretary of State would have followed OAG No 5822 and would have ruled that the mml’s activities do not violate the MCFA. The flaw in plaintiff’s reasoning is that this argument presumes that the Secretary of State would not have sought further guidance from the Attorney General in light of the amendment of the mcfa, specifically the adding of § 57, and further assumes that the Attorney General would have rendered a new opinion that was consistent with the 1981 opinion. These assumptions by plaintiff presume too much and undеrscore why Michigan law requires exhaustion of administrative remedies. Like the circuit court, we find nothing in plaintiff’s complaint that would indicate that the Secretary of State would not have sought guidance from the Attorney General or that the Attorney General would not have been willing to render an uрdated opinion to address the effects of the amendments of the mcfa. 12
Clearly, plaintiff has an adequate remedy, because it could have sought a declaratory ruling from the
*54
Secretary of State. Its sole argument is based on its speculation concerning what the outcome of that remedy would have been. “ ‘[N]o one is entitled to judicial relief for a supposed or threatened injury until the prescribed administrative remedy has been exhausted.’ ”
Holman v Industrial Stamping & Mfg Co,
Because § 15 of the mcfa, and the apa, set forth an administrative remedy procedure subject to judicial review, we conclude that plaintiff is required to exhaust its administrative remedies under the MCFA and the APA before filing suit in the circuit court. Absent a request for a declaratory ruling that results either in a denial of the request or a declaratory ruling binding on the parties, the judiciary lacks jurisdiction over this cause.
Michigan State Chamber of Commerce v Secretary of State,
B
CASE OR CONTROVERSY
MCR 2.605(A) empowers thе circuit court to issue a declaratory judgment in “a case of actual controversy.”
13
“[T]he existence of an ‘actual controversy’ is
*55
condition precedent to invocation of declaratory relief.”
Kuhn v East Detroit,
Generally, an actual controversy exists where a declaratory judgment is necessary to guide a plaintiff’s future сonduct in order to preserve the plaintiff’s legal rights.
Shavers v Attorney General,
Here, plaintiff’s claim is based not on actual harm, but on its speculation concerning how the Secretary of State would have acted if called on to do so. Until the Secretary of Stаte issues a ruling regarding the mml’s use of funds to support the llvc ballot proposal, there is no actual controversy.
Because there is no actual controversy, the court lacks jurisdiction to issue a declaratory judgment.
14
McGill v Automobile Ass’n of Michigan,
207 Mich
*56
App 402, 407;
Affirmed.
Notes
See
Hays v Kalamazoo,
The mml is funded by membership dues and receives some revenues from the sаle of publications and special services. About the mml, retrieved October 4, 2000, from the World Wide Web: http://www.mml.org/geninfo/aboutmml.htm.
The ballot proposal seeks a constitutional amendment that would require a two-thirds vote of the Legislature on any measure it passes after March 1, 2000, that “intervenes” in areas of “municipal concern.”
“[T]he Michigan Municipal League, as a nonprofit corporation, may, subject to the requirements of
The ballot proposаl is sponsored by a ballot question committee called “Let Local Votes Count.”
The mml is the Michigan association of cities and villages. Currently, more than five hundred cities and villages are members, representing approximately ninety-eight percent of Michigan’s urban population. Membership is voluntary. The mml provides a variety of services to its members, including maintaining a reference library, sponsoring conferences and training programs, offering consulting, personnel and labor relations services, administering insurance programs, producing numerous publications, and promoting stаte and federal legislation helpful to local governments. As noted, the mml is supported by membership dues and receives some revenues from the sale of publications and special services. About the mml, supra.
About the mml, supra.
The legislative history of the act shows that the act was intended to prohibit campaign contributions by a public body, to define “public body,” and to outline penalties for violation of the act. House Legislative Analysis, HB 5410, November 30, 1995.
Llvc is a ballot question committee that has sponsored the ballot proposal for an amendment of the Michigan Constitution requiring a two-thirds vote on any bill thаt would intervene in areas of municipal concern.
Defendants sought summary disposition under MCR 2.116(C)(4) and (C)(8). Plaintiff sought summary disposition under MCR 2.116(C)(9).
Because plaintiff did not seek a declaratory ruling, there was no record for the court to review. Judicial review of an administrative ruling is confined to the record. MCL 24.304(3); MSA 3.560(204)(3).
By saying this, we do not mean to imply any opinion concerning the issue whether OAG No 5822 remains valid after the passage of § 57.
MCR 2.605 provides, in relevant part:
(A) Power to Enter Declaratory Judgment
(1) In a case of actual controversy within its jurisdiction, a Michigan court of record may declare the rights and other legal relations of an interested party seeking a declаratory judgment, whether or not other relief is or could be sought or granted.
(2) For the purpose of this rule, an action is considered within the jurisdiction of a court if the court would have jurisdiction of an *55 action on the same claim or claims in which the plaintiff sought relief other than a declaratory judgment.
In light of our holding regarding lack of jurisdiction, we need not address other issues raised by the parties.