I believe what you may be referring to is called "part 15" broadcasting. That means that your transmitter is FCC accepted and you follow the rules for size of antenna, amount of AM ground radials, and other factors. Similar to the travel stations, these are VERY low power, but properly done can have a decent (small) range. These kind of stations can be processed just like a "real" AM, and require no license. However...NOT following the FCC regs can get the opertor in serious trouble, so if you get involved, do it right! Do the proper engineering, and enjoy! I'm pretty sure Scott G. of this site used to have or know someone who did have a part-15 setup. College stations of days gone by used to be what are called, "Carrier current" stations where the signal was pumped in to the AC line for radiating through campus dorms and other buildings, and...could be received in cars and portables under or near the AC lines on campus. Those are also unlicensed operations. Not as popular now that LPFMs have been legally available to non profit organizations like colleges.
Hope that helps some..