I believe that's true. You can openly carry anything. The University system claims to forbid any folding knife with a blade that locks open (i.e. most any pocketknife) and any blade longer than 2.5 inches, carried openly or concealed.
That's why I like to carry a Spyderco Dragonfly. A small (<2.5in) knife that is legal pretty much anywhere but feels like a much bigger knife when you use it.