A lot of law is adjudicated based on the intent, not the black-and-white definition. Proxying your traffic thru a friend's house (VPS in another location, etc) would be considered a "VPN" by a court. Definitional hacks, for the most part, don't fly with judges.

To handle the matter technically Utah would need a "great firewall of Utah" and a legislative mandate that all ISPs route thru it. Somehow they'd have to factor-in signals from cellular sites neighboring states and satellites.