Ridesharing has finally been approved within the state of California. Today, the California Public Utilities Commission (CPUC) officially recognized companies like Lyft, Sidecar, and Uber as "New Online Enabled Transportation Services" or "Transportation Networked Companies" (TNCs), approving a set of 28 rules and regulations for these entities. The move will allow ridesharing companies to continue operating around the state without fear of further government action against them.

So in short, smartphone-driven pickups are here to stay.

Since the introduction of ridesharing companies in 2012, California’s transportation regulator has consistently scrutinized the practice. By late 2012, CPUC slapped three firms with a cease-and-desist. Next came fines, which didn’t do much to stop the companies’ operations. So in December 2012, the CPUC seemed amenable to changing the rules as a way to legitimize these businesses.

And on Thursday, the CPUC formally approved that 76-page proposal (PDF) to legitimize ridesharing companies through regulations such as:

Among other requirements established in this decision, we require each TNC (not the individual drivers) to obtain a permit from the California Public Utilities Commission (Commission), require criminal background checks for each driver, establish a driver training program, implement a zero-tolerance policy on drugs and alcohol, and require insurance coverage as detailed below.

That new insurance will require a minimum of $1 million per incident worthy of coverage and a 19-point car inspection.

Previously, ridesharing companies did have some safety precautions in place. I briefly became a Lyft and SideCar driver in July 2012 and had to undergo a background check for both companies. The new regulations will certainly standardize that process across the board.

On its Twitter account, Lyft said Thursday that it was “excited for this historic decision.”

“Our decision emphasizes safety as a primary objective while fostering the development of this nascent industry,” said Commissioner Mark J. Ferron in a statement (PDF). “We have specified our expectations for the attributes of insurance. Now the insurance market will determine the best approach to ensure that there is coverage for passengers, drivers, and third parties at all times while these vehicles are operating on a commercial basis.”