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With hopes that taxicab service will expand and improve, the Milwaukee Common Council on Tuesday unanimously approved an ordinance that lifts the cap on taxicab permits and opens the door for new tech-based services such as Uber and Lyft.

The measure, the product of debate dating back to January 2013, ushers in a new era in public passenger vehicle licensing in the city. But as Ald. Terry Witkowski noted, the end game is the hope service will improve.

Assuming Mayor Tom Barrett signs the measure, the ordinance will take effect Sept. 1. Barrett has said he wanted a system that allows Uber and Lyft to operate legally.

Existing cab companies had bitterly opposed changes and are expected to challenge the ordinance in court.

The measure eliminates all caps on the number of permits in the city. For years, there had been 320 permits. In November, the council added 100 more.

With the arrival of new smartphone-based services such as Uber and Lyft, policy-makers, including Ald. Bob Bauman, drafted a new ordinance that ended the cap system for good and brought Lyft and Uber operators under the same system as traditional taxicab companies.

The ordinance requires Uber and Lyft drivers to adhere to the same licensing and background investigation requirements as other drivers. Inspections also will be required, though Ald. Jim Bohl argued the system for inspections was not precise enough.

Before the vote, Uber officials complained that the measure would hamper ride-sharing services. In a statement, Uber said the ordinance would require part-time, ride-share drivers to pay excessively high upfront costs; add more red tape; and result in higher user charges.

Drivers seeking a provisional permit must state they have not been convicted of any felony or misdemeanor related to a violent offense, have not been convicted of three or more moving violations and have not been convicted of any offense related to operating a motor vehicle while intoxicated.

During a brief debate Tuesday, Bauman likened the lengthy process to "sausage making."

Bauman said the new ordinance did, in some respects, loosen the reins on taxicab regulation in the city. He added, however, that "self-regulation is not a viable option."

With the vote, the council is now in compliance with a Milwaukee County court decision last year that declared the city's taxi cap to be unconstitutional.

The drivers who challenged the cap were represented by the Institute for Justice, which filed the lawsuit, and the Southeastern Wisconsin Taxi Drivers Association.

After the vote, about 30 drivers walked across the street from City Hall to Red Arrow Park for a victory rally. Many wore handmade name tags labeled "C.E.O.," to represent their freedom to operate independently. The drivers joined several times in a chant of "Taxi freedom!"

Anthony Sanders, the Institute of Justice lawyer who represented the drivers, said at the rally that he expected cab company owners to sue over the ordinance "any day now." But he said the claims would not stand.

"There is no constitutional right to being protected from competition," Sanders said. "Our drivers have a right to earn an honest living."

Ismail Harun, president of the Southeast Wisconsin Taxi Drivers Association, said the city cab owners have been running "a cartel" that will now be dismantled. "Today, there is no way to monopolize the drivers," Harun said.

He added: "The most beautiful part of it is that the public benefits."

Red Christensen, director of Milwaukee's Wisconsin Association of Taxicab Owners chapter, did not return requests for comment on a potential lawsuit.

The ride-share companies had mixed feelings about the ordinance, which adds fines and restrictions to services that violate regulations. Days before the vote, Uber created an online petition opposing the ordinance, calling it "an archaic regulatory ordinance." The petition amassed more than 4,200 signatures by Tuesday morning.

Uber spokesman Nick Anderson wrote in an email that the ordinance "creates a barrier for would-be driver partners" and "will severely limit the potential for ride-sharing growth in Milwaukee." He said that Uber will continue working with the city to expand its presence here.

An email statement from Lyft thanked the council for supporting ride-shares, but said that the ordinance "introduces additional regulatory burdens that will make it more difficult for everyday Milwaukeeans to access" the services.

After the meeting, Bauman called the ride-share companies "very petty, even childish" in their critiques.

Bauman said that if the companies want to continue serving Milwaukee, their lobbyists will need "to grow up and learn to play nice in the sandbox."