Rob, I got checked for a license there once and was told that I needed to get a permission slip from the main office. I went to the office and did so, and the slip is good for one year. Basically it released them off liability if you get hurt on the rocks fishing there. The lady that issued it told me that it really depends on the officer that checks you as to whether they tell you to get a slip and she said that most don't enforce it.
It can get crowded there, but there are not usually many problems. There are a lot of regulars there and since it is so crowded I have a hard time believing that the guy you saw wouldn't know the size limit for puppy drum.