Novice rules are rarely enforced and it's usually up to the tournament directors and the kids' coaches to keep these kids from breaking the rule... but many times nobody steps in and says no to them. One year (at our old club) we held a novice tournament and we had a state placer (who took 5th in a loaded state bracket and knocked off a #1 seed kid to get there) sign up for our novice tournament because it was only his 2nd season wrestling. A few of our coaches stepped up and said that he shouldn't be allowed, but the board allowed him to enter anyway. It caused alot of feedback to our workers from other clubs that attended and a few of us discussed it with some of his coaches and they said it wouldn't happen again, but there was no penalty (other than a scolding by mad parents) and he got to keep his 1st place medal.
As I pointed out, it's up to the tournament directors and club coaches to police and enforce the novice rule, but don't expect the rules to be followed by everyone... especially those who like to trophy hunt!