MACHINE READABLE PASSPORTS.

SEC. 417. MACHINE READABLE PASSPORTS. (a) [8 U.S.C. 1187 note] Audits.—The Secretary of State shall, each fiscal year until September 30, 2007— (1) perform annual audits of the implementation of section 217(c)(2)(B) of the Immigration and Nationality Act (8 U.S.C. 1187(c)(2)(B)); (2) check for the implementation of precautionary measures to prevent the counterfeiting and theft of passports; and (3) ascertain that countries designated under the visa waiver program have established a program to develop tamper-resistant passports. (b) [8 U.S.C. 1187 note] Periodic Reports.—Beginning one year after the date of enactment of this Act, and every year thereafter until 2007, the Secretary of State shall submit a report to Congress setting forth the findings of the most recent audit conducted under subsection (a)(1). (c) Advancing Deadline for Satisfaction of Requirement.—Section 217(a)(3) of the Immigration and Nationality Act (8 U.S.C. 1187(a)(3)) is amended by striking “2007” and inserting “2003”. (d) Waiver.—Section 217(a)(3) of the Immigration and Nationality Act (8 U.S.C. 1187(a)(3)) is amended— (1) by striking “On or after” and inserting the following: “(A) In general.—Except as provided in subparagraph (B), on or after” ; and (2) by adding at the end the following: “(B) Limited waiver authority.—For the period beginning October 1, 2003, and ending September 30, 2007, the Secretary of State may waive the requirement of subparagraph (A) with respect to nationals of a program country (as designated under subsection (c)), if the Secretary of State finds that the program country— “(i) is making progress toward ensuring that passports meeting the requirement of subparagraph (A) are generally available to its nationals; and “(ii) has taken appropriate measures to protect against misuse of passports the country has issued that do not meet the requirement of subparagraph (A).” .