Not true at all. Many States have Licenses that have the same chip technology that passports have. Flying with these Licenses are just like flying with passports, domestically of course. I live in Washington State, one of the 5 that are non-compliant. I have an "enhanced" license meaning I paid more to have a license with the chip technology. I can travel to/from Canada without my passport because of it, and have no worries about flying.