There was an "official" (from someone in an office) letter that one of us (Dave) received to the effect of "yes there's a law, but we don't enforce it".
Talk about confusing.
If you check out some of the other threads, some of FCBA's members (notably Dave, Kyle, and I think Thomas) have been actively trying to petition for the law to be reconciled with reality. We shall see how that progresses. In the meanwhile, it would seem you're OK (unofficially).
(This doesn't constitute legal advice; I probably have no idea what I'm talking about, really)
Personally, I only recently started producing beers which I was proud of, so had not considered entering into any competitions. (I have the palates of the FCBA to guide me in quality+technique control).