In Indiana you have to produce a LTCH if asked for it by a LEO. If you do not you can and will be arrested. If you do have one your record will be purged when it is showed to the officer or courts.
Its in the IC
This is basically the answer. Before everyone screams "but they can't pull you over to check your driver's license", go read the statutes requiring a drivers license and the one creating an exception for those with a LTCH.
Joe