MI SB1197

Authorizes the Mackinac Bridge Authority to acquire, construct, operate, maintain, and manage a utility tunnel connecting the Upper and Lower Peninsulas of Michigan for pipelines, electric transmission lines, telecommunications facilities, and related infrastructure.

Creates the Mackinac Straits Corridor Authority as a state institution within the Department of Transportation, governed by a 3-member board appointed by the governor with senate approval, to oversee utility tunnel operations and agreements.

Establishes the Straits Protection Fund to receive money and assets for utility tunnel-related costs, with the state treasurer directing investments and the state transportation department administering the fund.

Requires the Corridor Authority to enter into tunnel agreements by December 31, 2018 (or within 45 days of receiving a gubernatorial proposal) that ensure private parties bear all construction and maintenance costs, allow multiple utility users, prohibit eminent domain use, and require proper oversight and labor engagement plans.

Prohibits the state, Mackinac Bridge Authority, and Corridor Authority from incurring obligations for utility tunnel costs except from the Straits Protection Fund or escrow funds, and shields these entities from liability for equipment owned and operated by utility users within the tunnel.