Definition
1. In this law, “boycott of the State of Israel” – deliberate avoidance of economic, cultural or academic ties with a person or other party, solely for reason of his/her/its relation to the state of Israel, to any of its institutions or to any area under its control, which could cause them economic, cultural or academic harm.

Boycott – a civil wrong
2. (a) Anyone who publishes a public call for a boycott of the state of Israel, and its content and circumstances may reasonably be expected to lead to a boycott, and the publisher is aware of this possibility – is committing a civil wrong and the law of Tort [new version] shall apply to him/her.

(b) Regarding Section 62a of the law of Tort [new version] causing breach of contract by calling for a boycott of the state of Israel shall not be seen as sufficient justification.

(c ) If a court finds that a wrong has been committed under this law, it shall be permitted to order the party committing the wrong to pay compensation independently of actual damage done (exemplary damage). When determining the sum of compensation the court shall take into account the circumstances of the wrong, its severity and its scope.

Regulations regarding restrictions on participation in a tender
3. The Minister of Finance is permitted, pending authorization by the Constitutional Committee of the Knesset, to set regulations regarding restrictions on participation in a public tender, due to undertakings made by a party making an offer to participate in a boycott of the state of Israel, including undertakings not to purchase products or services produced or provided in the state of Israel, in any of its institutions or in an area under its control.

Regulations regarding withholding of benefits

4. (a) The Minister of Finance, with the agreement of the Minister of Justice, is permitted to decide with regard to any party who knowingly publishes a public call to impose a boycott on the State of Israel or regarding any party who agreed to participate in a boycott [in special cases], that –

(1) The party shall not be considered a public institution (charity) for purposes of Section 9(2) of the Income Tax Ordinance;

(2) The party shall not be eligible to receive funding from the council for regulation of sports gambling according to Section 9 of the law for regulation of sports gambling 1967;

(3) The party shall not be considered a public institution (charity) for purposes of receiving support according to Section 3a of the Budget procedures law 1985;

(4) The provisions of the state guarantees law 1958 shall not apply to the party;

(5) (a) The party shall not be eligible for benefits under the law for promotion of capital investments 1959 and under the law for promotion of research, development and industry 1984.

(b) The enforcement of the authority of the Minister of Finance in accordance with subsection (a)(2) shall be done with the agreement of the Minister of Sport, and the enforcement of his authority in accordance with subsection (a)(3) shall be done with the agreement of the Minister appointed by the government to be responsible for the budget section, as defined in para (2) of the definition ‘responsible for the budget section’ in the Budget law 1985. The enforcement of his authority in accordance with subsection (a)(5) shall be done with the agreement of the Minister of Industry, Trade and Employment.

Implementation
4[sic]. The Minister of Justice is appointed to implement this law.

n.b. this is an unofficial translation