Driver's License Security and Modernization Act

Driver's License Security and Modernization Act - Prohibits a Federal agency from accepting a State-issued driver's license or identification card unless it includes certain information, including a digital photograph, a common machine-readable technology, and certain anti-fraud physical security features. Prescribes minimum license or identification card issuance standards and other special requirements (including requirements with respect to the issuance of temporary drivers' licenses and identification cards) States must meet.

Requires a State, among other things, to require, before issuing a driver's license or other identification card, valid documentary evidence that a person has: (1) U.S. citizenship; (2) lawful permanent residence in the United States; or (3) another specified lawful immigrant or nonimmigrant status.

Requires a State, to be eligible for a grant to assist it in conforming to such minimum standards, to participate in the interstate compact, "Driver License Agreement," in order to provide electronic access by a State to information contained in the motor vehicle databases of all other States.

Repeals similar requirements contained in the Intelligence Reform and Terrorism Prevention Act of 2004.