Watts and her husband, Brian James Lucas, were arrested and released Thursday after a witness called police complaining of indecent exposure.
According to the police report, the couple was "briefly detained."
"Upon further investigation it was determined no crime had been committed," the report read.
Watts and Lucas took to Facebook and were none too happy with how the situation played out.
"Today I was handcuffed and detained by 2 police officers from the Studio City Police Department after refusing to agree that I had done something wrong by showing affection, fully clothed, in a public place," Watts wrote.
She said the handcuffs the officers put on her cut her wrist.
Lucas, who is white, at least partly blamed the incident on race — Watts is black — and how the two were dressed.
"From the questions that he asked me as [Daniele] was already on her phone with her dad, I could tell that whoever called on us (including the officers), saw a tatted RAWKer white boy and a hot bootie shorted black girl and thought we were a HO (prostitute) & a TRICK (client)," Lucas wrote. "So they handcuffed her and threw her roughly into the back of the cop car until they could figure out who she was. In the process of handcuffing her, they cut her wrist, which was truly NOT COOL!!! Of course, they had to let her go eventually cuz we weren't a threat to anyone."
The police report said an internal complaint investigation as launched regarding the incident.
The town replaced two old signs on U.S. Hwy. 74 that used to say "Home of Randy Travis."
Town Manager Fern Shubert told the Charlotte Observer the signs were replaced because they were old and falling apart, and the removal of Travis' name had nothing to do with his recent alcohol-related arrests.
She said people in town thought the old signs looked "too busy" so they simplified them.
The new signs say "Welcome to Marshville North Carolina."
"It's nice, it's dignified and it gets the job done," Shubert said. "There was no disrespect to Randy Travis. It looks more like your traditional welcome sign."