House Bill 1438 amends Chapter 403 of the Private Acts of 1951, which governs the City of Erin, by making significant changes to the city's governance structure and electoral qualifications. The bill deletes specific subdivisions in Article I, Section 1.02, clarifying definitions and qualifications for electors and city officials. It introduces new qualifications for the offices of Mayor and Alderman, requiring candidates to be qualified voters and residents of the city for at least 24 months prior to their election, while also outlining ineligibility criteria related to prior convictions and residency. Additionally, the bill addresses the roles of city officials, including the appointment of a city recorder, treasurer, and judge, all serving at the pleasure of the Board of Mayor and Aldermen.

The bill further revises provisions related to property tax levies and penalties for late payments, establishing that the Board of Mayor and Aldermen must set a tax levy as a fixed rate per one hundred dollars of assessed valuation. If no levy is made within ninety days prior to the tax due date, the previous year's rate will continue. It also specifies a penalty of three percent for each month of late payment and increases the threshold for unbudgeted expenditures from $2,500 to $5,000. Additionally, the Board of Mayor and Aldermen is granted the authority to select official depositories for city funds and require necessary collateral security. The enactment of this bill requires a two-thirds vote of the legislative body of the City of Erin and will take effect upon becoming law for approval, with other provisions effective as outlined in the bill.