This chapter does not prohibit supervised public displays of fireworks by cities, fair associations, amusement parks, and other organizations. Except when such display is given by a municipality or fair association within its own limits, no display may be given unless a permit therefor has first been secured. Every application for such a permit must be made in writing to the city auditor at least fifteen days in advance of the date of the display. The application promptly must be referred to the governing body of the city which shall make an investigation to determine whether the operator of the display is competent and whether the display is of such character and is to be so located, discharged, or fired that it will not be hazardous to property or endanger any person. Such governing body shall report the results of this investigation to the city auditor and if it reports that in its opinion the operator is competent and that the display as planned will conform to safety requirements, including the rules and regulations of the state fire marshal hereinafter provided for, such auditor shall issue a permit for the display when the applicant pays a permit fee of two dollars. When the supervised public display for which a permit is sought is to be held outside the limits of an incorporated municipality, the application must be made to the county auditor and the duties imposed by this chapter upon the city auditor must be performed in such case by the county auditor. The duties imposed on the governing body of the city by this chapter must be performed in such case by the board of county commissioners. After such permit has been granted, sales, possession, use, and distribution of fireworks for such display are lawful for that purpose only. No permit granted hereunder is transferable. The state fire marshal shall adopt reasonable rules and regulations not inconsistent with the provisions of this chapter to ensure that fireworks displays are given safely.