By Andy Dahn

BLOOMINGTON -An ordinance that allows transportation network companies like Uber to legally operate in the city has been approved by the Bloomington City Council.

The ordinance allows city officials to monitor that the companies are conducting background checks on drivers and that all drivers are insured. Bloomington Assistant Corporation Counsel George Boyle said companies that refuse to follow regulations will be subject to severe consequences.

“There can be fines of the companies or the drivers from $250 to $3000 per occurrence,” Boyle said. “There can also be suspension of the company’s license or revocation of their license.”

Boyle said the city is able to monitor companies like Uber in a variety of ways.

“We have the opportunity to audit the companies to make sure that they are doing the things they’re required to do in terms of insurance, background checks, investigation of public complaints about drivers,” said Boyle. “They also must conduct vehicle checks and we can ensure that they are doing that.”

An additional ordinance gives taxi companies the option to operate under the same regulations as companies like Uber, which Boyle said several companies may elect to do.

“I think it’s fair to say that some taxi companies are concerned,” Boyle said. “Some drivers are worried that this will represent very formidable competition and may hurt their business. Others aren’t as concerned, it varies.”

Both ordinances are pilot projects and will be monitored throughout the year.

Andy Dahn can be reached at [email protected].