New Orleans City Council Vice President JP Morrell has filed legislation to exempt nonprofits, artists and others from having to buy large bonds to put on small special events, after recent enforcement of an old law threatened the future of art markets in the city.

Under a 1956 law, event organizers have to pay a small percentage of a bond ranging from $10,000 to $20,000 to get a permit to host a special event. If all vendors at the event don’t pay their sales taxes to the city on time, organizers could be on the hook for up to the full bond amount.

When the city resurrected the rule in April, many event organizers, particularly nonprofits, said that wasn’t a risk they could afford to take, nor did they believe it should be their responsibility to act as de facto tax collectors for the city. After backlash from organizers, several council members pledged to address the issue.

Morrell’s proposal lets nonprofits, artists and craft makers put on markets and other events without buying bonds as long as they have less than 15 vendors, don’t charge admission and have no more than two vendors at the event that accept cash.

However, several popular markets in the city have more than 15 vendors. For instance, the monthly Freret Street Market has about 80 vendors each month, and the larger events Bayou Yacht Club hosted had around 50. Bayou Yacht Club announced in June they would stop hosting events because of the bond policy.

Under Morrell’s measure, the city’s Department of Finance would have the option to reduce the bond amount needed if event organizers ban cash payments altogether, though it’s not clear if they would do so or by how much.

With the legislation, Morrell is also trying to entice organizers to go cashless. He mentioned at a previous council meeting earlier this month that it’s easier for the city to collect sales taxes with electronic forms of payment.

“If you’re swiping a card and a sales tax is automatically applied, it can literally go to our coffers almost instantaneously if it’s done through electronic point of sale,” he said.

The council could vote on the measure as early as Aug. 8.