Yes, the bracelets are free, you just have to show your resort ID. I read that they start handing them out 2 hours before scheduled closing time, but I think they probably started earlier than that - I wasn't paying that close attention, so I can't swear by it.
It was easy to get them and there seemed to be several places around the parks where you go to get them. They didn't really publish where they were handed out, but I asked CM's and they were very knowledgeable.
All in all a good system I thought. Much easier than I thought it would be. FYI - if you have little ones make sure the CM doesn't put theirs on too tight...my DS really complained the first night! (and they are hard to get off too
)