The rules governing movement to and from the 27 remaining European Union member states will change.
Opposition parties have disputed the outcome, claiming vast rigging in favor of the governing Movement for Multiparty Democracy.
The governing Movement for Mulitparty Democracy named Levy Mwanawasa its candidate to succeed President Frederick Chiluba in an election planned for later this year.
The legislation passed through Bolivia's Senate last week where Morales' governing Movement Toward Socialism party holds a two-thirds majority, and was enacted on Sunday.
A day after the governing Movement for Multiparty Democracy expelled 23 senior members who oppose a third term for President Frederick Chiluba, legislators struck back, filing a motion in Parliament calling for the president's impeachment.
Levy Mwanawasa, the candidate for the governing Movement for Multiparty Democracy, took his oath of office at the Supreme Court a day after more than a thousand opposition party supporters stormed the building, accusing the government of rigging the presidential election last week.
A number of ousted cabinet ministers, led by a former vice president, had already begun creating a political party to challenge Mr. Chiluba and his governing Movement for Multiparty Democracy.
With the presidency and 130 of the 150 seats in Parliament held by the governing Movement for Multiparty Democracy, the party is loathe to cede its tight grip on power.
Nobody seemed sure who would win, but some recent opinion polls showed the populist, a former Cabinet official named Michael Sata, with a hefty lead over Mwanawasa, of the governing Movement for Multiparty Democracy.
But if Hugo Chávez is unable to quickly return to power in Venezuela, it remains to be seen how effectively his brother can hold off the spirited, if divided, opposition here and build support in a governing movement so centered around the president himself.
