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," while outlining the responsibilities of the New Jersey Motor Vehicle Commission (MVC) in creating and securing these digital forms of identification. Key features of the digital licenses and IDs include protections for personal information, selective disclosure capabilities, and data integrity maintenance. Holders of digital licenses are permitted to present either a digital or printed version of their identification without needing to relinquish their electronic devices for verification.

Additionally, the bill emphasizes cybersecurity by requiring verifiers and digital wallet providers to report any cybersecurity incidents to the MVC and the New Jersey Office of Homeland Security and Preparedness. It includes provisions for updating motor vehicle records and ensuring accessibility for individuals with disabilities. The MVC is also tasked with public education regarding these digital licenses and IDs, and a report on the system's implementation and effectiveness is mandated within two years. The legislation amends existing laws to allow for the electronic presentation of drivers licenses and related documents, establishes penalties for violations, and mandates the MVC to adopt necessary regulations for implementation, with the act set to take effect 44 months after enactment.