Two things:  

Not at all equal to 'professional' HAA  that charges stupid amounts

The charge "stupid" amounts because they  don't have the taxpayers funding the whole kit and caboddle for them, and then raking in gravy money from insurance companies over their already paid for operation!

UNFAIR COMPETITION!

...came about from failed attempts to keep public helicopters from charging only DIRECT costs.

They came about because back in the late 80's and early 90's, local governments were trying to share their resources from one to another, like in adjacent counties with shared interests.  Mosquito control was a big one.   They couldn't "charge" one county for the costs to use the aircraft in another under FAA rules, so these local governments lobbied to allow them to be given a commercial license so one county could recoup operating costs from another county.   Once they got the law changed in that regard, now the world was open for them to abuse this loophole and take over an entire region with mon0p0lu powers.   They fund their entire operation with TAX PAYER money, and then also "charge/bill" insurance companies on top of that.  That is not anything like how a legitimate certificate holder survives financially.

Unfair Competition!