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My last university also put in a policy of no longer accepting local GLO's. It was also a public university. There were local sororities and one local fraternity, and all the local sororities affiliated with NPC's and the local fraternity has since disbanded I think.
One of the reasons they decided to put that policy into effect was because of a situation that was happening within one of the local sororities. One of the members threatened to sue the university (LONG story, but she didn't even have a case, and that's a whole other story) since the local sorority she was part of did not have any types of insurance or any assets to begin with. I guess the school figured if the groups had nationals with national backing, they [the school] wouldn't get into messy situations like that unless they truly were at fault for something. But that's just my guess.
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