I don't think so. How do you think they can implement your third quote with substantially undermining VPNs? Do you know of other states closer to banning them, either directly or indirectly?
Another reading of "Utah is close to banning VPNs" is "Utah did something that is not banning VPNs but (as an editorial opinion) is thematically and logically adjacent to that concept." This matches reality (under some viewpoint) but is an unnatural reading.
Hence, the sentence "Utah is close to banning VPNs" is misleading, as evidenced by others' comments. That you read the headline "correctly" does not show the headline to be forthright.