After an hour-long debate, lawmakers approved the measure in a 39-35 vote. HB239 now heads to the Senate.
Rep. Glenn Donnelson, R-North Ogden, said the cards are a threat to national security because anyone, including terrorists, can get a federal individual taxpayer identification number (ITIN), which is needed to get a driving privilege cards.
"Utah driver privilege cards are making it possible for illegal aliens to operate in our society," he said.
Some lawmakers said public safety shouldn't be a concern because undocumented immigrants can still get auto insurance with a drivers license from another country.
Last year, Utah issued some 41,000 driving privilege cards statewide.
A recent state study showed almost 76 percent of cardholders insure their vehicles. Eighty-two percent of people with drivers licenses have insurance.