Gov. John Hickenlooper on Thursday signed into law a bill that officially authorizes ride-sharing services, making Colorado the first state to legislatively embrace disruptive transportation offerings from upstarts such as Uber Technologies and Lyft.

“Colorado is once again in the vanguard in promoting innovation and competition while protecting consumers and public safety,” Hickenlooper said in a statement released with the signing of Senate Bill 125.

He called for Colorado regulators to review rules placed on taxis and limos, questioning whether they’re still appropriate or necessary with the advent of so-called transportation network companies like Lyft and Uber. Throughout the legislative process, taxi officials had argued ride-sharing companies have unfair advantages because they don’t face similar regulations as cabbies, such as rate, coverage area and insurance requirements.

Hickenlooper said “rules designed to protect consumers should not burden businesses with unnecessary red tape or stifle competition by creating barriers to entry.”

Uber and Lyft allow consumers to hail rides from everyday people who use their personal vehicles for fares. The connection between driver and passenger is made via a smartphone app and the cost of the fare is typically lower than a taxi ride.

The services, available in Denver since September, will now be lightly regulated by the Colorado Public Utilities Commission.

Lyft, Uber and other ride-sharing companies will have to obtain permits from the PUC and carry at least $1 million in liability insurance. The companies, or their drivers, will also have to carry primary insurance coverage during the controversial gap period – when a driver is soliciting fares but hasn’t been matched with a rider.

Hickenlooper is urging the PUC to require drivers’ vehicles to be inspected by certified mechanics.

Drivers, though, will not be required to undergo the same criminal background checks that taxi drivers face, an area of concern for Hickenlooper. Taxi drivers are subject to fingerprint background checks performed by the Federal and Colorado Bureaus of Investigation, while ride-sharing drivers will remain vetted by private companies that use publicly available data.