Nope, didn't hear about the 'removal from a craft store incidenct', but sounds like a violation of Utah law to me.
From the LLL law summaries page "Utah enacted legislation clarifying a woman’s right to breastfeed in public, even if there was some exposure of the breast. It exempts breastfeeding from indecent exposure statutes. "
http://www.llli.org/Law/Bills37.html
I'll post if I learn anything more -
Regarding the article, sigh. This reinforces the importance of mother to mother support. We can't rely on getting it from the government. BF moms spend money on their families, corporations spend it on lobbying.