I can't punch him in his face, but I should!

[rdkerrville]

get to Texas ASAP we welcome ten gallon hats here.

[Wudstix]

Joke or no joke, that is inappropriate for a superviso, report him. You might get his job.

[Bluesman]

Pull him into a private office and tell him to back off with the humor crap.
Sounds like he isn't qualified or trained in any acceptable form of management supervision.
Back him down to where you want him. If he bends, he'll probably stay where you want him. Sort of twist his head off with common sense.
Do the HR thing as a last resort but expect some sort of backlash from it.

[EASY]

I am not one for filing complaints but I think he has one coming.

[d arrow]

You my friend are one of the good man in my book, if you ask me? You did the right thing &, what a man should do. leave them be, what they want to be, "BUT". Before you move back to TX? beat the Broke Back Mountain out of him, no, no, just kidding. Seriously, you did the right thing & I respect you for that.