LaROSE, Judge.
The School Board of Hillsborough County appeals an administrative order reversing its decision to deny a request by Tampa School Development Corporation, d/b/a/ Trinity School for Children (Trinity), to consolidate the charter contracts of its two schools. The School Board argues that the administrative law judge (ALJ) lacked subject matter jurisdiction and erred in reversing the School Board's denial. It also contends that section 1002.33(6)(h), Florida Statutes (2011), violates the Florida Constitution to the extent that it impinges on the School Board's authority to run the public school system in Hillsborough County. We affirm.
Trinity currently operates two charter schools in Tampa pursuant to contracts with the School Board. One is an elementary school (Trinity School); the second is a middle school (Upper School). Both are excellent institutions, having received A grades from the Florida Department of Education (DOE).
In 2008, after several years of struggling with the unexpected administrative costs of running two schools, Trinity sought to reconsolidate its two charter contracts with the School Board. Trinity could save about $120,000 per year by eliminating duplicative administrative tasks such as preparing two sets of financial audits, two accountability reports, and two school improvements plans. The Charter School Supervisor for the School Board advised Trinity that, according to DOE, Trinity could combine the schools:
Trinity's charter contracts were not scheduled for renewal until 2010, but Trinity believed that consolidation was a foregone conclusion. Indeed, when it came time to submit a renewal contract in May 2010, the School Board sent Trinity only one draft contract that covered both schools. Trinity and the School Board began to negotiate the terms of that single document. The School Board did not advise Trinity that it had to submit a new charter school application. See § 1002.33(3)(a).
In June 2010, implementation of an unanticipated statutory change altered the administrative fee that a charter school must pay to a sponsoring school board. As a result, if the School Board approved Trinity's proposed consolidation, the School Board would lose approximately $60,000 per year in fees from Trinity. Retreating from its earlier assurances, the School Board rejected consolidation, advising Trinity in writing that there is no educational benefit for students by combining the two schools.
Thereafter, Trinity and the School Board attempted, unsuccessfully, to mediate this matter before DOE. See § 1002.33(6)(h).
At the outset, we address DOAH's subject matter jurisdiction over Trinity's consolidation request. Section 1002.33(6)(h) provides, in part, as follows:
If the School Board's rejection of Trinity's consolidation request was "a charter school application denial, a charter termination, or a charter nonrenewal," DOAH lacked jurisdiction.
We agree with the ALJ that Trinity's request was an effort to modify existing charter contracts. As such, the statutory bar to DOAH's jurisdiction was inapplicable. As the ALJ reasoned:
Tampa Sch. Dev. Corp., d/b/a Trinity Sch. For Children, No. 11-2183, at *2, 2011 WL 6328412 (Fla. Div. Admin. Hearings Oct. 25, 2011).
The procedural posture in which this matter came before the ALJ establishes that Trinity was not applying for a new charter. Moreover, the School Board's decision does not qualify as a charter termination or nonrenewal. This dispute by the terms of section 1002.33(6) was not exempt from the ALJ's consideration. The ALJ properly exercised jurisdiction.
We now address whether the ALJ erred in granting the requested consolidation. He did not; competent, substantial evidence supported his decision. We fail to see how consolidation would not inure to the benefit of Trinity's students. The ALJ found that Trinity's "request to combine the two charter schools into one charter is appropriate and consistent with the flexibility that the legislature has provided to charter schools, and meets the express guides for charter schools." Id. at 5. Section 120.68(10), Florida Statutes (2012), provides:
We will not substitute our judgment if the ALJ's findings are supported by competent, substantial evidence. Competent, substantial evidence, sufficient to sustain a finding of an administrative agency, is evidence that is sufficiently relevant and material that a reasonable mind might accept as adequate to support the conclusion reached. De Groot v. Sheffield, 95 So.2d 912 (Fla.1957) (en banc); Fla. Bd. of Med. v. Fla. Acad. of Cosmetic Surgery, Inc., 808 So.2d 243 (Fla. 1st DCA 2002). The ALJ concluded:
Tampa Sch. Dev. Corp., d/b/a Trinity Sch. For Children, No. 11-2183, at *5, 2011 WL 6328411 (Fla. Div. Admin. Hearings Oct. 25, 2011). The final order was supported by competent, substantial evidence. It belied the School Board's conclusion that consolidation would be devoid of educational benefit to the students. Accordingly, we affirm on this issue.
Finally, we conclude that section 1002.33(6)(h) is constitutional. The School Board's effort to raise this issue before the ALJ was feeble. As a result, our record on this issue is sparse. We are mindful that the ALJ lacked jurisdiction to declare the statute unconstitutional. See Key Haven Associated Enters., Inc. v. Bd. of Trs. of Internal Improvement Trust Fund, 427 So.2d 153, 157 (Fla.1982), superseded by § 253.763(2), Fla. Stat., on other grounds as noted in Bowen v. Fla. Dep't of Envtl. Regulation, 448 So.2d 566, 568-69 (Fla. 2d DCA 1984), approved, 472 So.2d 460 (Fla. 1985). Perhaps the parties would have been better served had the School Board raised this issue first in circuit court. See id. (holding circuit court may entertain declaratory action on statute's validity in appropriate circumstances where statute being implemented by agency is claimed to be facially unconstitutional). Although the constitutional issue could have been better developed below, see Rice v. Dep't of Health Rehabilitative Servs., 386 So.2d 844, 849 (Fla. 1st DCA 1980), we may pass on the constitutionality of a statute when it is necessary for reviewing administrative action. See id. We will not shun our duty.
Section 1002.33(6)(h) does no violence to article IX, sections 2 and 4
Affirmed.
ALTENBERND and NORTHCUTT, JJ., Concur.
The thrust of the School Board's argument is directed at section 4.