Senate Bill 1566 establishes the Humphreys County Water Authority as a public governmental body and political subdivision of Tennessee, tasked with managing water and wastewater systems for Humphreys County and its surrounding areas. The bill outlines the Authority's purpose, which includes planning, acquiring, operating, and financing these systems, and emphasizes that these activities are a public necessity. It details the governance structure, specifying a board of commissioners with five members who will oversee operations, including entering contracts, issuing bonds, and setting service rates. The Authority is granted various powers, such as acquiring property, employing staff, and establishing regulations to enhance water and wastewater services in the region.

The bill also delineates the Authority's exclusive rights to provide water and wastewater services within municipal boundaries upon acquisition of existing systems and allows for the designation of additional service areas. It empowers the Authority to issue bonds and notes for financing improvements, with provisions for securing these financial instruments through revenue pledges. The Authority's properties and income are exempt from state, county, and municipal taxation, and the state or any political subdivision will not be liable for the Authority's debts. Additionally, local governments are permitted to support the Authority through actions like selling or leasing existing systems. The act will take effect upon a two-thirds vote of the legislative body of Humphreys County and includes a severability clause to maintain enforceability of remaining provisions if any part is found invalid.