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They're leashed per the letter of the law. But nowhere in the law does it says I have to be holding on to the leash 100% of the time, nor does it say what the minimum length is.
So I keep a little nubbin leash on (>3') which I hold onto in case we come up to people in the trail. This approach hasn't gotten me in trouble in the past 4 years.
It also helps that my dog is exceptionally well behaved. Just look at him go.
