Closed season means that you are not supposed to target those species, and if you happen to catch one of them, you are supposed to release it immediately. I think that is standard across all states.
What your "town claims" vs. what the actual DNR regulations are, may differ. The DNR officers will enforce state regulations.
Now one other thing to consider are "special" regulations. Many states have special season dates, different minimum length requirements and daily limits depending on the body of water. It's all part of fisheries management. This may be why the DNR guys see these fish being taken and don't write up the anglers in question. When in doubt, ask a DNR officer or go to your state's DNR website and read through the regulations. That will help you know what is legal and what is not, with ultimate goal being to keep yourself from getting into trouble with the guys in the green pants.
Tight lines!