It's not a local rule, it is an AKC rule.
"Lure Coursing breeds with disqualifications, as listed in the AKC Breed Standards, are ineligible to enter lure coursing trials and tests. The following are the disqualifications for FSS Breeds that have been approved for lure coursing."
http://www.akc.org/events/lure_coursing/fss_dis_faults.cfm
And from the actual regulations:
"Spayed and neutered hounds are eligible to participate in AKC Lure Coursing Test and Trial Events; monorchid and
cryptorchid hounds are ineligible."
"Hounds with breed disqualifications, as listed in The AKC Breed
Standards, are ineligible to enter AKC Lure Coursing Tests and Trials."
http://www.akc.org/pdfs/events/lure_coursing/revised_rules_jan09.pdf
Although it only lists one disqualification for Ibizans: "IBIZAN HOUNDS – Any color other than white or red."