Fred, since I am not a lawyer and certainly not familiar with the laws of each state and/or municipality, I won't argue with your statements. I do recall, and if wrong for now, please someone correct me, that when I lived in Chicagoland, the forest preserve sites were administrated by some specific club/s and the counties required AMA for the users of the model flying facilities.
I know the big Scobee Field here in the Houston / Harris County does the same thing. Bayou City Flyers run the field, however anyone can fly as long as he/she is an AMA member.

Things are: (1) The city/county owns the facility, and they do the majority of the maintenance, so who is going to question how the facility is administrated? (2) If some one wishes to carry the fight far enough, he/she may win the battle about the taxpayer funded thing. Then the city/county simply withdraws the funding, the place is closed and ALL THE USERS are WELL SHAFTED. So just who WINS?

If each flier is required to have AMA insurance, I know that other person can finance any injury he may do to me. I also know that I may not lose the farm if I hurt someone else.

Therefore regardless of the fact that I have to put aside my lofty ideals at times, I wrote into the land contract of sale a Deed Restriction that the Club MUST maintain 100% of the AMA Charter Requirements as long as they owe me money on the mortgage. I think any owner leasing any facility can do same or as their situation calls for, regardless of whether the monies are taxpayer funded or what. H_ell, look at what the government does with my tax money and I don't have ANY say in that.

There are times to fight the legal matters, and there are times to simply shut up and go with the flow. I suppose it is all referenced to the depth of one's pockets. AMA dues for the insurance coverage is one of the best deals in town.