Yep, you got it right. Non-Resident Applicants must
: 1) reside in a state which honors UT reciprocity, AND
2) have a CCW for their own state (with reciprocity). All other states (applicant) without reciprocity will no longer be able to be issued the UT CFP. But, that's only if the bill is signed by the UT Governor. But, it's already passed two stages, and sits on his desk.
There's a cleaner version of this bill at: http://le.utah.gov/~2011/bills/sbillamd/sb0036s01.pdf