http://www.huffingtonpost.com/2011/0..._n_902203.html
So the transgender woman has her sex/gender listed as female on other documents like her passport. The state of Alaska initially listed her sex/gender as female but then rescinded that license and reissued a license listing the sex as male. The ACLU is suing the state on behalf of the woman. The state is wanting documentation that the woman has undergone sexual reassignment surgery prior to changing the listed sex.
While I can certainly appreciate the woman's desire to be listed as female, I don't feel like her rights have been violated. Sex and gender are two separate concepts. The woman may indeed identify as the female gender; however, barring sexual reassignment surgery, the woman clearly still possesses a male sexual assignment. I believe the state is well within its right to demand documentation of SRS having been undergone before changing the sex assignment on the license.