I have to think that one of the funniest personal experiences of "really fucking stupid" government laws that I've experienced has to be the time I rode up with a friend from Hawaii who is a huge cigar fan. So we go up to a humidor shop that he orders stuff from all the time then has shipped back home. Not being a smoker, I don't care about cigars but a nice long motorcycle road trip in the fall is something I'll never pass up. So we get there, and go in the shop, and he starts placing his order and they want to show him some new cigar brands and he asks to smoke one. They oblige him and he starts to light up. They stop him and says he has to go outside. He asks why. They say that the law prevents anyone from smoking indoors. We both laugh and say are you kidding, it's a cigar shop. The guys laughs and says, yeah it's stupid, you can't smoke in a cigar shop. So he starts walking towards the front door and they stop him again. The owner says that the law says you can't smoke outside within 20' of a public walkway. So he has to go out back to light up his cigar.
Now if that isn't the dumbest thing I've ever heard of, but hey, that's that law and the government fucking with a private business.