I'm not at all sure that this is an accurate statement of the new law.
a) The officer has to have "reasonable suspicion" (actually a technical legal term) that you are not a citizen to even quiz you
b) Of course, he could have that, and simply be wrong;
c) As I understand it, he can quiz you, and if he THEN has "probable case" (another technical term) to think you are illegal, he could arrest you, but "producing proof of citizenship" isn't part of it.
If you are a citizen, you can probably convince him by talking and answering questions. And, of course, you may be a non-citizen, but be legal (greencard, visitor visa, etc.).
But, it does raise the question of, in your example, how does the license info show that you are a citizen? -- an illegal might have a license, or be driving someone else's car with permission; or, the person might have a bad record, but still be a citizen?
How should a citizen react if a cop treats him with "reasonable suspicion" or says he does? what proof can you offer, or argue?
Always read the bill ... It's the freeper first law of understanding what is going on ... LOL