OK, let me throw my two cents in here, with a disclaimer:
Disclaimer: I worked PT for the PD from 1978 to 1996, so I've been out of circulation for 10 years now. Policies may well have changed and each department does their own thing. PDs definitely do more CYA these days than they did in earlier years, that's a fact of life in our litigous society.
Now with that said, my take on the original situation (putting myself in the initial officer's shoes), based ONLY on the story as posted above (which is different than what I had read a year or so ago):
- Joe (victim) allegedly walked over to the officer to ask a question about some historical issue. Thus, the officer didn't initiate a stop or query.
- Jacket blows open and officer sees the gun and comments to Joe about keeping it concealed.
Now we're missing critical info at this point:
* Did Joe apologize, agree with the officer and state that he'd take steps to ensure it doesn't happen again?
* Did the officer ask to see his LTC? If so, and it was in order, I would not be inclined to report this non-event!
Now speaking as myself, I would have used "officer's discretion" and either not reported the contact at all, or just that Joe inquired about historical issue X. No need to mention anything about a legally carried gun on a non-officer initiated social contact.
I oftentimes go up to our officers when I see them and chew the fat with them. Sometimes it's about a gun club, sometimes it's about the politics in the town, sometimes it's about the PD, and other times it's just a personal discussion between friends. I'd hope that all that doesn't get into a report read by my chief for every "contact".
In the days I worked, I saw a lot of things that never got reported. Only dispatched calls, officer-initiated contacts, or something that looked significant ever made it into my reports . . . and I was a lot more detailed than most of the FT or PT officers on the force at that time.