JJ, I have _never_ heard the like. What city is that? And why do they charge you a fee and then pay you afterwards? And...UNIFORMS? (Obviously so the busking police can keep track of who's a "real" busker.)
It's sort of progressive in a Huxleyan kind of way--obviously its nice to know you'll get some money for your time, and that the city wants you there. Having them say when you can take a break is bizarre. Much more common for the city to limit how long you can play in one spot.
I did do flat-rate plus-tips busking for the National Capital Commission (administers federal property in Ottawa) once on Canada Day. They paid me $100 for the day and called it "street animation". But hey, that's Canada Day--they spend millions on it.