I agree with you. I'm not entirely sure this statute applies to backyard poultry -- if anything, local laws are a more restrictive element than this broad brush non-enforced proposed mandate.
I should probably mull it over longer, but here's something that caught my eye:
"An exemption is provided for dealers who maintain four or fewer breeding females of pet animals, small exotic or wild animals, and/or domesticated farm type animals and offer their offspring for sale."
I would...