The bill establishes a comprehensive framework for the issuance and use of digital drivers licenses and digital non-driver identification cards in New Jersey. It defines essential terms such as "digital drivers license," "digital non-driver identification card," and "digital wallet," and mandates that the New Jersey Motor Vehicle Commission (MVC) create and issue these digital forms of identification to individuals who voluntarily request them. The bill prioritizes security and privacy, requiring the MVC to implement protective features for personal information and allowing holders to selectively disclose data. It also prohibits verifiers from requiring physical possession of a holder's electronic device for verification and ensures that holders are not compelled to use digital identification over printed versions.

Additionally, the bill outlines the responsibilities of verifiers and digital wallet providers regarding data collection and retention, mandates reporting of cybersecurity incidents, and requires the MVC to provide public education on digital licenses. It introduces provisions for assessing fees for digital licenses, with some funds potentially aiding individuals facing surcharges for certain violations. The legislation amends existing laws to allow electronic presentation of drivers licenses and related documents, establishes penalties for violations, and mandates the MVC to adopt necessary regulations. The act is set to take effect 44 months after enactment, with preparatory actions allowed to begin sooner.