Utah has less people than my city, and produces 0.9% of the national GDP. Anyone attempting to do business there at any scale also quickly realizes that it is not a secular state government and you'll have to bribe/work around the Mormon church.
Well, that, but also California law is usually somewhat reasonable and/or pro-consumer. We can make fun of things like the "everything is known to cause cancer" stickers or whatever, but most of sold-in-California laws are doing something to help society, at little-to-no cost. And when the costs of doing the right thing get high, they unite with other states to ensure companies don't skip out (see CARB states).
This, in contrast, does not help anyone. Utah is just doing this to punish people and enforce a pseudo-religious standard. They really have nothing to lose, by blocking the entire state. Even if they attempted to comply with the state punishment, the "0.9% of national GDP" is lost to them anyway, most people aren't going to willingly put an ID card on file for this.
I know this isn't in effect, but won't this hurt only Utah? Just don't sell devices there. People will buy them across the border.