Despite the spin coming from opponents of the law, police will not be allowed to stop people for suspecting a person to be undocumented. Only after stopping a person for some other legitimate lawful purpose, and then at that time finding reason to suspect the person might be undocumented, will the police be allowed to ask for documentation. Byron York has this excellent analysis in the Washington Examiner:
Contrary to the talk, it is a reasonable, limited, carefully-crafted measure designed to help law enforcement deal with a serious problem in Arizona. Its authors anticipated criticism and went to great lengths to make sure it is constitutional and will hold up in court. It is the criticism of the law that is over the top, not the law itself.
The law requires police to check with federal authorities on a person's immigration status, if officers have stopped that person for some legitimate reason and come to suspect that he or she might be in the U.S. illegally.