168.110.  Contract modification, when — definitions — differential placement, when, requirements. — 1.  As used in this section, the following terms mean:

  (1)  "Hard-to-staff schools", attendance centers where the percentage of certificated positions in the attendance center that were left vacant or were filled with a teacher not fully qualified in the prior academic year exceeds ten percent as reported to the department of elementary and secondary education;

  (2)  "Hard-to-staff subject areas", content areas for which positions were left vacant or were filled with a teacher not fully qualified in the prior academic year as reported to the department of elementary and secondary education.

  2.  The board of education of a school district may modify an indefinite contract annually on or before the fifteenth day of May in the following particulars:

  (1)  Determination of the date of beginning and length of the next school year;

  (2)  Fixing the amount of annual compensation for the following school year as provided by the salary schedule adopted by the board of education applicable to all teachers.

  3.  The board of education of a school district may include differentiated placement of teachers on the salary schedule to increase compensation in order to recruit and retain teachers in hard-to-staff subject areas or hard-to-staff schools.  The board may annually review its hard-to-staff subject areas and hard-to-staff schools.  No modifications to the identification of hard-to-staff subject areas or hard-to-staff schools, or both, for the purpose of placement on the salary schedule shall result in the demotion of a teacher in the salary schedule.

  4.  Any salary schedule that includes differentiated placement of teachers on the salary schedule under subsection 3 of this section for hard-to-staff subject areas or hard-to-staff schools, or both, shall be set prior to approval by such board of education.

  5.  The modifications shall be effective at the beginning of the next school year.  All teachers affected by the modification shall be furnished written copies of the modifications within thirty days after their adoption by the board of education.

  6.  Each school district that includes differentiated placement of teachers on the district salary schedule shall annually provide to the department of elementary and secondary education a report containing the following information:

  (1)  The salary schedule adopted by the district;

  (2)  The number of positions filled by differentiated placement of teachers for hard-to-staff subject areas;

  (3)  The number of positions filled with differentiated placement of teachers for hard-to-staff schools;

  (4)  The number of steps and additional compensation that teachers with differentiated placement received for the school year; and

  (5)  Any other relevant information required by the department.