An unleashed dog in an unfenced front yard IS most definitely running loose.
There is most certainly a difference between a dog that stays on his owners property and one roaming out on the street. According to the story the dog was in the yard. If the cyclist is in the street and the dog is in the yard, how is the dog drawing fire? I would be curious to know if the guy on the bike was either a gang banger or a cop.
I live in a town with a 'leash law'. If the dog is on the owner's property WITHOUT a leash; it is said to be under the owner's control, and NOT in violation of the leash law. Of course, when the unleashed dog sees a cat...