"If in fact it's true, we've got a serious problem," Ward said. "I've got a couple thousand names. . . . I am going to be checking into every single one. So far, 90 percent are illegal aliens."

Ward said his office started looking into the "contractors" about two weeks ago. He's also working on a long-term investigation into illegal immigrants obtaining commercial licenses in Utah and using them elsewhere in the country.

Schaff recommended a more in-depth audit of the state Driver License Division as well as legislation modeled after a Tennessee law that identifies noncitizens as a separate class of drivers.

Valentine said the Legislative Management Committee will be asked to approve the audit, and the suggested legislation was introduced Wednesday.

The sponsor of SB227, Sen. Curt Bramble, R-Provo, said he did not unveil his proposal until the audit was completed. "This is a highly contentious issue," he said.

Bramble's bill would repeal a 1999 law that allows the use of a temporary identification number (ITIN), issued by the Internal Revenue Service, to obtain a Utah driver's license.

Those who support the licenses say they force illegal immigrants to learn the rules of the road and sign up for auto insurance. But others worry that easing license restrictions would allow terrorists like the Sept. 11 hijackers and other criminals to insinuate themselves into American society.

Utah is one of 10 states that permit illegal immigrants to get drivers' licenses.

Last July, Tennessee became the first state to establish a two-tier licensing process. That state's "certificate for driving" is available to illegal immigrants and other noncitizens, including foreign students.

The Utah bill would invalidate licenses already issued without a Social Security number on the holder's next birthday after July 1. The new "driving privilege card" would have to be renewed annually, at a cost yet to be determined. It would look different from a driver's license and would be stamped with the phrase, "FOR DRIVING PRIVILEGES ONLY — NOT VALID FOR IDENTIFICATION," or something similar.

An attempt last session to alter the driver's license requirements failed after a demonstration just before lawmakers adjourned. The sponsor of that legislation, Sen. Bill Hickman, R-St. George, said if his fellow lawmakers had known about the problems associated with the existing licenses, "that bill would have moved through and very easily had been passed."

Gov. Jon Huntsman Jr. was briefed on the audit findings earlier this week by lawmakers and "is generally supportive of the bill," his spokeswoman, Tammy Kikuchi, said. "Of course, we'll have to watch it as it goes through the process."