As an aside, one potential effect of this, and I know they had this in mind when drafting the law, is that it to some extent "forces" other states to change their laws as well.
From the first part:
Text of Arizona's Anti-Illegal Immigration Law - Part 1 | KEYTLaw, section B
Quote:
A person is presumed to not be an alien who is unlawfully present in the United States if the person provides to the law enforcement officer or agency any of the following:
1. A valid Arizona driver license.
2. A valid Arizona nonoperating identification license.
3. A valid tribal enrollment card or other form of tribal identification.
4. If the entity requires proof of legal presence in the United States before issuance, any valid United States federal, state or local government issued identification.
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AFAIK, MN, the state in which I live, does not require proof of legal presence to get a driver's license, and I know many other states, such as CA does not as well.
This means that if I go to AZ, I need to bring my passport.
That's a bit weird / scary.
Now one may argue that this is because MN (and CA) has it wrong, and AZ is doing things correctly. But it is, to me, an interesting side effect.