Yes it is very reasonable and should be in placed to deter puppy mills.
The part that I have a problem with is the exercise portion.
Lets say you have 11 hunting dogs, hounds, or sled dogs, they want you to walk or run each of them for more than an hour each day. You can't use things such as treadmills, swim tanks, pools, or any exercise equipments without your vet's approval. Why should I need to go to the vet and to get their approval for how I should exercise my dogs? That is the controlling aspect that I have issues with.