The reason for the LEO telling you to lose the scallion (as little as it is) is that people and even off duty LEO's aren't supposed to have any sort of item that could be a weapon on a licensed premise. A bar or club has a liquor permit and a beer license and thus any licensed facility (for alcoholic beverages at least) can't have weapons carried in. Now the owner or manager is allowed to carry in order to protect what is his, but any patrons or persons entering are not allowed (or supposed) to carry.
In Texas, we can have "more protection" than what the US government gives us, thus we have our own state laws and city ordinance laws. So as an example:
Let's say US says 6" is the legal blade length (made up number)
Then we as Texas can say "no, 5.5" blade length" (it's less than the US, but not above it)
Again, it can be lowered by the city to anything below 5.5, but not above it....savvy?
So traveling between cities you can walk around at rest stops and anything along the way with a 5.5" blade, but once you enter a city, it's their ball game. Once I become a Peace Officer (this May :thumbup

I won't be a hardass about knives unless the person is obviously up to something
Now ask me 5 years from now how I feel about knives and we'll see how I am after possibly being stabbed or shot on a routine basis :foot: