I'm an Iowa transplant from Maryland five years ago. Haven't really followed HS track/XC here since moving five years ago. Maybe I should.
This is a joke. In all my years of coaching and running, never heard of anything like it. I've seen the bell rung early, but the consequence is just running another lap, tired as you may be. Sucks it happens at state. But you don't stop the race early.
This is on the athlete. Count your laps. Watch the timer. If you're in a state meet, you're a high 9s/low 10s guy, and don't know that a timer reading 7:xx at the bell lap is wrong, that's your problem. The one kid with the brains to realize it get's screwed. Nope.