What can a municipality demand from a license holder related to alarm systems?

A municipality has the authority to ensure public safety and operational efficiency regarding alarm systems within its jurisdiction. This is reflected in the correct choice regarding the demand for the discontinuation of malfunctioning devices. When alarm systems do not function properly and repeatedly trigger false alarms, they can drain public resources by necessitating an unnecessary response from law enforcement or security services. Consequently, municipalities may enforce regulations that require license holders to stop using or fix malfunctioning alarm systems that compromise effective response efforts.

The other options do not align with common municipal regulations. Municipalities typically cannot compel businesses to subscribe to specific services, pay for monitoring, or impose annual operation fees, as such financial demands would usually fall outside their jurisdiction unless explicitly outlined by local ordinances, which is not a typical practice for alarm system management.