These are all good points and perhaps should be addressed directly with law.

This law seems aimed at asserting control over something which does not belong to the government. The first amendment enshrines rights of freedom of association. While there is no punishment, there is an effort by the government to cast scorn upon certain institutions. I would say this is not a legitimate purpose of the government. Again because of the first amendment, nobody should be judged by the government due to who they decide to hang out with.