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The University of Wisconsin has a similar rule.
We did have locals at one point -- the chemistry fraternity Alpha Chi Sigma was founded here and later went national, and looking at the old yearbooks confirms that local sororities and fraternities were a part of the campus culture in the 1920s and 30s. I'm not sure when the new rule took effect.
As ktsnake points out, technically a public university can't keep a local GLO from existing -- but without university/Greek system recognition, I would be very surprised if a local could survive, let alone thrive, here. The campus is relatively anti-Greek so without campus support OR support from the Greek system, I imagine a local would be short-lived.
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