Yeah, lots of work to be done, but the Legislature seems open to the fixes. The ABC is enforcing the rule as it stands.
Right now the crux is over the status of the beer. It's currently seen as a donation to the non-profit CHA. The new law expressly forbids the donation of homebrew to a non-profit dedicated to promoting homebrewing (aka the CHA) or made mostly of homebrewers (aka the CHA). So, that's no good. (The wording was really intended to prevent a doofus like me starting "Drew's Brews for the Cure - of his Empty Wallet Non-Profit", donating my homebrew and then auctioning it off. aka circumventing the regulation of alcohol sales in the state to funnel money to an unlicensed operation. I suspect this was added both at the behest of the ABC and the state's distributors)
A lot of this is because the CABC discovered the fest a few years back (after it had been done for ~20 years) and it raised all sorts of alarm bells - 2000 people, unregulated festival, legally unclear use of homebrewed beer, other questions (does a membership that's only benefit is admission to the festival really a smokescreen for a sale), etc. Since an enforcement agency's default answer is almost invariably "no", I'm surprised we got the few years we did before something like this cropped up and shut down the whole enterprise.
But, never mind the present - it's on to the future with new changes to the code that will allow us to once more have our fests and other fun!