Hehe. That's Utah!
Seriously, all the media is getting it wrong; not that the local government is correct, either.
Like most states, Utah has a history of "rave" dances which used to attract thousands of kids and others (including all the drugs and overdose deaths that they involved). Utah isn't immune to various party drugs like GHB, meth and ecstasy (think Breaking Bad meets Big Love). Utah is the state with the most prescription-drug abusers in the nation. Several elected officials have lost careers after being arrested with illicit drugs or infamous DUIs.
In an effort to solve the abuse and deaths, especially at typical locations (special-event dances with or without alcohol permits), local law-enforcement agencies have been delegated certain authorities by the state to review and police such events. No doubt, some communities like St. George, Utah, enjoy local elected officials and law-enforcement agencies which are too enthusiastic about this authority and have overacted in their reviews and policing.
Remember that about 80 percent of Utah's population is urban. The remaining 20 percent live in areas where people could drive two hours just to visit their nearest neighbors. This kind of anonymity is attractive to the kind of people who would introduce the risky products and services that cause the problems. The combination of these facts and local leaders just trying to keep a lid on legalities, makes for the occasional national headline. But, most of the time, these small communities are a lot like 21st century versions of Mayberry.
I suspect that there will be a race between the Utah Office of the Attorney General and the ACLU of Utah to see who remedies the situation first. The Church of Jesus Christ of Latter-day Saints doesn't appreciate this kind of governance, either, for obvious reasons. Some careers might get threatened over this, but I sense that it will blow over and apologies made.