(a) A person may apply to an agency for a declaratory decision as to the applicability to specified circumstances of a statute, regulation, or decision within the primary jurisdiction of the agency.
(b) The agency in its discretion may issue a declaratory decision in response to the application. The agency shall not issue a declaratory decision if any of the following applies:
(1) Issuance of the decision would be contrary to a regulation adopted under this article.
(2) The decision would substantially prejudice the rights of a person who would be a necessary party and who does not consent in writing to the determination of the matter by a declaratory decision proceeding.
(3) The decision involves a matter that is the subject of pending administrative or judicial proceedings.
(c) An application for a declaratory decision is not required for exhaustion of the applicant’s administrative remedies for purposes of judicial review.