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The same way they do if you hand them a non-photo license from another state.
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Not to belabor the point and get completely off topic but the Bush Administration is trying to force state's to comply with a federally mandated format for drivers licenses! This would make every license in every state identical, and contain a magnetic or some other strip eventually giving LE access to whatever information is placed your computer file.
For state's that don't comply the penalty, in addition to loss of federal dollars, would be to refuse to recognize that state's drivers licenses as a form of ID for federal purposes, like getting passports, entering federal buildings etc. (you vill give me your papers!)
Now, back to the topic at hand:
BoatUS recently surveyed it's members about boating safety certificates and I believe one of the questions (if I recall) had to do with a photo ID. I'm looking forward to the results.