It's intended for those who don't drive and therefore, don't have a driver's license.
The legislation aims to support immigrants by expanding their access to state programs.
Street vendors, for example, can more easily get local health permits with a state ID.
Undocumented students will have improved access to in-state tuition at public colleges and universities.
Critics have argued it rewards people who enter the country illegally, and they've expressed concerns about the cost of rolling out the new ID's.