The proposed legislation says motorists who do not give cyclists the three-foot clearance could be fined up to $500.
The bikeshare program includes 250 bicycles at 25 stations in downtown Indianapolis.
Sidewalk construction and upkeep in Bloomington is causing tension between some residents and city officials.
City of Bloomington officials Tuesday announced a plan to make the city friendlier to bicyclists and pedestrians by 2016.
One of the worlds most respected endurance races passes through Bloomington.