It couldn't be used for federal identification or anything else like a state ID. It would allow them to get insurance, and it would only be available for people over 18-years of age who have a tax ID number.
They'd need to provide a valid passport and other supporting documents, and the state would take their fingerprints. Supporters say it would make the roads safer, plus, the immigrants could get to work or school without worry.
A few other states have similar permit programs. A nearly identical bill almost passed the house a few years ago, but the session ended before the senate could vote.