The law disproportionately targets the Hispanic ethnicity, that's racist, illegal and I suspect unconstitutional.
Fortunately, the Constitution protects the rights of those whom even aren't citizens of our own country so we don't have idiots abusing those who come to our country just trying to find jobs that pay below minimum wage.
They are currently an estimated ten million illegal immigrants in the United States, with a number this significant it's basically impossible to remove them. The best option would be to finally secure our borders and give amnesty and citizenship to those who are currently in the United States illegally.
Fortunately, the United States is a free country and we're not required to carry identification. This law solely rests on a persons "look" and that by definition isn't considered "reasonable suspicion". A drivers license isn't even evidence that someone is in the country legally.
How do you know it targets Hispanics? Even if it affects Hispanics more, you'll still have to show an anti-Hispanic intent. http://en.wikipedia.org/wiki/Equal_Protection_Clause#Discriminatory_intent_and_disparate_impact.3F
Another problem with you reasoning is that it essentially means a country can never try to limit immigration because someone might see it as racist.
You don't have to deport ten million illegals. You just have to block their ability to work and get benefits. They'll leave once you do that.