Screw it. I belong to two, and half belong to a third, awesome clubs. I live 1800 miles from my "home club" that I would enter under. I normally don't enter because I feel it is a waste of money and effort to pay entry and shipping. Next year I will enter my max under BN Army with my buddy Jim. I might have my wife brew some and enter her max as well.
The BN Army is a club if they want to be a club. They don't need a board, a charter, a constitution, articles of incorporation, dues, or a meeting to be a club. The only requirement to be a club should be a group of brewers that share a common bond and have a desire to be together as one.
I don't think a rule change is needed. If a club wants to win, that club needs to increase their numbers and brew better beer. First round ribbons should count as it took a good beer to get that ribbon. Add a "National Homebrew Competition" to the front of the title and call it a day.