The policy not being in place in the first place is an example of the corrupt, broken, shady, or financially driven political/legislative system. Someone(s) with real influence could have put these policies in place, but doing so they knew it would have rubbed the right people, the wrong way and they couldn't do that because it would have impacted them.
Because if it's true that the PD tried to dismiss him, but couldn't due to legal grounds protecting such instances, it's like wtf, who is making this legal and protecting someone who is openly proud of their Nazi heritage, all while being a law enforcement officer.