What is the foul?

[Mike L]

Originally Posted by bigjohn

always comes down to name calling for some folks! That shows very little class.

and no I am not looking for camelot, I just want it fixed. I have emailed my states rules guru and he has acknowledged my proposed change.

I thing Rule 3-7-5 should read as follows.

Rule 3-7
ART. 5 . . . An entering substitute shall be on his team's side of the
neutral zone
when the ball is snapped or free kicked. A players must have been inside the
9 yard marks as well.

Don't you think that fixes this little problem?

Only if you wish to make the Illegal Formation foul into a Substitution foul, which is unnecessary and/or redundant.
Your problem seems to be an inability to have to read & recall several different sections of the rule book for a series of acts that are very similar in order to come up with the correct foul. That's not a problem with the rule book.
In this situation:

1) if he's not on his side when the ball goes live, it's illegal substitution. 3-7-5
2) if he's on his side but never gets inside the 9 yd marks, it's illegal formation. 7-2-1
3) if in the opinion of the covering official the late substitution is made in order to deceive the defense, it's illegal participation 9-6-4d
4) there's also the possibility of an illegal shift call if he never comes set. 7-2-6

for 2) or 3) the official is well within his perogative to "pass" on the call if he feels no advantage has been gained which usually comes from the "offending" player getting covered by the defense prior to the snap despite his illegal act.