How to use GPS without using Google Location Services
Not exactly matching your description (using the "last known" position if not GPS available), but still a good alternative:

On two of my devices, I completely got rid of all proprietary Google services, replacing them by alternatives. In detail, I've described this in Android without Google 5: Free your Droid!¹ (update¹). In short, this is what I've done:


Flash a custom ROM that comes without GApps (here: CyanogenMod)
Installing microG (successor of NOGAPPS)
Generating the lacells.db as described at XDA, and pushed it to the device


As a result, I've got a totally offline working location service using cell tower IDs and the lacells.db, Playstore access via BlankStore¹ or YalpStore, and a working Maps API using OpenStreetMap. So with "no GPS active", I still get my location as long as there are cell towers in reach. I can, however, not say whether it's using the "last known position" if there's no GPS and no cell towers.

¹ Disclosure: link go to one of my sites