(2) “Alarm system contractor” has the meaning stated in § 12-806 of this article.

(3) “Alarm user” has the meaning stated in § 12-806 of this article.

(b) This section applies to all counties and municipalities.

(c) If a county or municipality requires an alarm user or an alarm system contractor to register an alarm system, the county or municipality may impose a penalty against an alarm system contractor for failure to register an alarm system only if:

(1) the alarm system contractor requested a dispatch to an alarm user; and

(2) the alarm system contractor failed to register the alarm system.

(d) If a county or municipality requires an alarm user or an alarm system contractor to renew an alarm system’s registration, the county or municipality may impose a penalty against an alarm system contractor for failure to renew an alarm system’s registration only if:

(1) the alarm system contractor requested a dispatch to an alarm user;

(2) the alarm system contractor failed to renew the alarm system’s registration; and

(3) the county or municipality provided the alarm system contractor notice that:

(i) the alarm system’s registration expired;

(ii) the alarm user or the alarm system contractor did not renew the alarm system’s registration; or

(iii) the alarm system’s registration has been suspended.