The chips don't need to be physically read by someone scanning your license -- they can be read by monitors within a 30-foot range. Information contained will include name, DOB, physical characteristics, and a private identity number that will allow access to further information stored in the state's DMV database. One good thing about the enhanced ID's: travelers will be able to cross the border without a passport as of January 2009.
The Department of Homeland Security is in favor of the program, promoting it under the Western Hemisphere Travel Initiative. Said a DHS fact sheet, "Multiple cards can be read at a distance and simultaneously with vicinity RFID technology, allowing an entire car full of people to be processed at once." Motorists won't be compelled to use an enhanced ID, however -- in the beginning, it will be by voluntary issue only.
[Source: The Newspaper]