(a) In this section, “monitoring” means the receipt of fire alarm or supervisory signals or retransmission or communication of those signals to a fire service communications center that is located in this state or serves property in this state.
(b) Except as provided by Subsection (c), a political subdivision may not offer alarm system sales, service, installation, or monitoring unless the political subdivision has been providing monitoring services within the boundaries of the political subdivision as of September 1, 1999. Any fee charged by the political subdivision under this subsection may not exceed the cost of the monitoring.

(c) A political subdivision may:
(1) offer service, installation, or monitoring for property owned by the political subdivision or another political subdivision;
(2) allow for the response to an alarm or detection device by:
(A) a law enforcement agency or fire department; or
(B) a law enforcement officer or firefighter acting in an official capacity; or
(3) offer monitoring to a financial institution, as defined by § 59.301, Finance Code, that requests, in writing, that the political subdivision provide monitoring service to the financial institution.
(d) Subsection (b) does not apply to a political subdivision:
(1) in a county with a population of less than 80,000; or
(2) in which monitoring is not otherwise provided or available.
(e) This section is not intended to require a political subdivision to hold a license under this chapter.