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. The Authority will be governed by a five-member board of commissioners with specific residency and appointment requirements. The bill grants the Authority various powers, including the ability to sue, enter agreements, incur debts, issue bonds, and set service rates, while also allowing the board to create rules for managing the Authority's affairs.

Additionally, the bill provides the Authority with exclusive rights to offer water and wastewater services within municipal boundaries upon acquisition of existing systems and allows for the designation of additional service areas in unserved regions of Humphreys County. It empowers the Authority to condemn land necessary for its operations and mandates the board to establish reasonable rates to ensure financial sustainability. The Authority's bonds and financial instruments are exempt from certain taxes and are not subject to regulation by the Tennessee Public Utility Commission. The bill also clarifies the liability of political subdivisions regarding the Authority's obligations and includes provisions for local governments to convey interests in existing systems to the Authority. A two-thirds vote from the legislative body of Humphreys County is required for the bill's approval, with certain provisions taking effect upon becoming law.