That does suck. I don't get a lot of flack in Indiana as our knife laws are basically "no ninja stars", and to be honest, the discretion of LEO here tends to err on the side of not being too overly aggressive...at least to me a middle aged white guy.
I have used my Microtechs without a hassle. I usually go with an Ultratech if I am trying to be more discrete.
I did have a car salesman 16+ years ago flip out over my Vic Fireman. My future wife and I were looking at purchasing a used Honda Civic for our first car together. Some idiot at the lot had tied and trippled knotted balloons to the mirror. Our salesman did not have anything to cut the ribbon with (and was also missing one of his arms), so I pulled out the Vic and used the blunt, curved, serrated blade that is specifically included on the knife to cut straps safely to gently get under the knot and sever the ribbon.
The guy got wide eyed, "whoooa, is that from your ghetto days?" Really? I guess I should have asked him if his hook hand resulted from his days privateering in the Royal Navy.
He would have really freaked out if he had caught a glimpse of the 12" khukuri on my belt that was under my over shirt