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That practice occurred in the in home daycare my daughter was in as well as the larger daycare my son is currently in. I know there are two tiers for in home daycares here--registered and licensed--so I don't know if that paperwork is universal or kicks in at a certain level. I do recall noticing a lot of paperwork infractions listed on the state's website as I was browsing in home places.
Regarding baby still acting hungry after her bottle - I had the same issue, and switched to a slower nipple - VOILA!! Took her longer to drink her bottle, and she was happy after!
Try the Playtex NaturalLatch slow flow nipple with the Playtex VentAire bottle. I switched to that from Dr. Brown's slow flow and problem solved!
And yes - separate milk into the serving size you choose and state that baby gets one of those per feeding.