Because that's almost what it was (although on medium wave). Back when police radio first got started, the transmitters used AM in the 1700 kHz range, just above the AM broadcast band, and could be received on many broadcast receiving sets of the day.
It was one-way only; the RTO (radio telephone operator) would simply get on the air and announce "Car 54, go to 123 Any Street, investigate woman screaming" or whatever. Car 54 would receive it and head that way. If they needed additional information or assistance, they had to use a police call box on the street.
Typical early car radios only covered up to around 1600 kHz, so a prohibition against a receiving set that could receive a "police radio station" above that frequency was doable. The language "police radio station" just stuck over the years.