http://ozreport.com/12.045#1

The current CIVL Section 7A Sporting Code (http://www.fai.org/hang_gliding/documents/sc7):

2. 17.8 Cloud flying

Cloud flying is prohibited and gliders may not carry gyroscopic instruments or other equipment permitting flight without visual reference to the ground. The organisers may include special instruments by type or name under this prohibition. Proven cases of cloud flying will result in a penalty being applied; this will be a zero score for the day of the first offence and exclusion from the remainder of the competition for any subsequent offence.

The recent CIVL Plenary votes to leave this section unchanged.

The local rules for the 2007 World Championships in Big Spring, Texas (http://ozreport.com/bigspring2007afterCIVL.php):

FAR 103 and Cloud flying

FAR 103 (U.S. Airspace Law/ Federal Aviation Administration Air Traffic Rule violations).

All competitors are required to comply with FAR 103 at all times. A copy of FAR 103 can be provided to all competitors. Any verified infraction will result in a penalty (see below) for the associated day or possible ejection from the contest.
Pilots are expected to familiarize themselves with all controlled airspaces in the vicinity of course lines (maps will be provided).

It is illegal and un-sportsmanlike for competitors to fly into clouds. Competitors who fly into clouds will incur a penalty for the day. A competitor is deemed to have flown into a cloud if he/she is observed by a meet official or videotaped going into and disappearing into a cloud, or videotaped appearing out of a cloud, or: If two witnesses from two different countries near the accused witness the accused going up into the cloud and completely disappearing from their view, and attest to this fact in writing and if barograph or 3D GPS traces from the accused and a witness show the accused above the witness at the time of the incident.

If the accused cannot produce a barograph trace for that day or a 3D GPS track log from their 3D GPS, only two witness statements are required. It is highly recommended for all competitors to fly with a recording barograph and they must fly with a 3D GPS at all times.

It is recommended that a pilot sucked into cloud who did not have the intention of gaining an advantage should perform a figure 8 maneuver once out of the cloud so that other pilots could see it had not been intended.

Witnesses should press Mark/Enter when they witness a pilot going into a cloud. Any pilot found to be deliberately supplying false information about another pilot with respect to cloud flying will be removed from the competition.

The penalty - the offending pilot shall receive a 10% reduction in their score for the first infraction, 30% reduction for a second, and then a zero daily score for any further infractions.

Notice the vast difference in penalties provided for between the CIVL rule and the local regulations. The point of the local regulations was that we wanted to make sure that the penalty was in fact applied. We felt that if the penalty was too draconian the penalty would never be applied and pilots would not turn in any one for cloud flying.