ISRAEL PRACTICE NEWSLETTER
WINTER 2021
TABLE OF CONTENTS Introduction..............................................................................................................................................................................2 USTR Extends Section 301 Exclusions for COVID-19 Related Medical-Care Products.............................................................2 Infrastructure Investment and Jobs Act Revitalizes Superfund Tax on Chemicals......................................................................3 Biden Administration Announces Revised Deadline for Federal Contractor Vaccination Requirement .......................................3 FERC Chairman Signals Enhanced Environmental Review........................................................................................................3 GSA Mandates Disclosure of Foreign Ownership/Financing of High-Security Leased Spaces...................................................4 Important FTC Rules for Health Apps Outside of HIPAA............................................................................................................4 COVID-19 Insights....................................................................................................................................................................5 Media Mentions and Speaking Engagements...........................................................................................................................5
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ISRAEL PRACTICE
NEWSLETTER Holland & Knight is a U.S.-based global law firm with a strong commitment to the state of Israel. We focus on providing guidance to Israeli investors and companies interested in doing business in the United States and Latin America. With more than 1,600 professionals in 31 offices, our lawyers and professionals are highly experienced in all the interdisciplinary areas necessary to guide entrepreneurs, investors, and startup or established companies through the opportunities and challenges that arise throughout the business or investment life cycles. Areas of legal guidance that are typically provided to our Israel Practice clients include real estate, mergers and acquisitions, private equity, international tax, cross border and customs, internet privacy and cybersecurity, intellectual property, government lobbying, regulations and compliance, U.S. Foreign Corrupt Practices Act (FCPA), U.S. Foreign Account Tax Compliance Act (FATCA), and litigation and dispute resolution. We invite you to read our Israel Practice newsletter, in which our authors discuss pertinent American-Israeli topics. As Israel has been a crossroads and a prolific source of new ideas for more than 3,000 years, a natural tradition of inventiveness finds its most recent expression in the creation of a technology startup ecosystem with global impact. This newsletter addresses, among other relevant topics, how the innovative technologies and ideas generated in Israel can be deployed in the United States and globally. We invite you to discuss your thoughts on this issue with our authors listed within the document. Please note: Holland & Knight has established a COVID-19 Response Team to help address business, regulatory and legal issues companies may face related to COVID-19.
USTR Extends Section 301 Exclusions for COVID-19 Related Medical-Care Products By Ronald A. Oleynik, Andrew K. McAllister and Mackenzie A. Zales Given the strong trade relationship between the United States and Israel, it benefits Israeli companies operating in the United States to stay abreast of decisions made by the U.S. Trade Representative (USTR) that may affect those companies. Of note, in reaction to the COVID-19 pandemic and ongoing medical supply chain issues across the globe, the USTR announced that it would continue to exclude certain Chinese medical-care products from additional tariffs. Israeli companies in the medical industry that operate in the United States should be aware of any exclusions that might apply to their products, as the exclusions can lead to significant tariff savings. Even though the Section 301 tariffs and corresponding exclusions are related specifically to trade between China and the United States, Israeli companies should take this action as a sign that USTR is still making significant trade decisions based on the COVID-19 pandemic’s impacts. For companies in the medical-care products industry, this action signals that those products may remain exempt from tariffs for the foreseeable future. As new COVID-19 variants continue to emerge, USTR will likely continue to adjust any tariffs that may negatively impact the healthcare industry. Read full article >>
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Infrastructure Investment and Jobs Act Revitalizes Superfund Tax on Chemicals By Nicole M. Elliott and Rachel T. Provencher The Infrastructure Investment and Jobs Act (IIJA), signed by President Joe Biden on Nov. 15, 2021, revives the chemical tax, originally established in 1980 and defunct since 1995. The tax applies to the sale, use or import of 42 listed chemicals, as well as certain substances produced from such chemicals. The tax is imposed beginning in July 2022 and is effective for 10 years. It is anticipated that the tax will raise $14.4 billion and is expected to cause a rise in the cost of these materials. Read full article >>
Biden Administration Announces Revised Deadline for Federal Contractor Vaccination Requirement By Eric S. Crusius, Kara M. Ariail, Christian B. Nagel, Kelsey M. Hayes and Amy L. Fuentes Israeli companies that perform work for the U.S. government, in the United States, will be impacted by the new COVID-19 vaccine mandate for government contractors. Companies performing as prime contractors for the U.S. government can expect to see contract modifications from their contracting officer, and subcontractors can expect to see modifications from their prime contractors. If an Israeli company is presented with the vaccine mandate clause and performs work only outside the U.S., then the company might have grounds to reject the clause as inapplicable. Read full article >> To receive the latest updates on this evolving topic, please visit our Government Contracts Blog and subscribe to our Government Contracts alerts.
FERC Chairman Signals Enhanced Environmental Review By Dianne R. Phillips and Brendan H. Connors Under the current partisan configuration of the Federal Energy Regulatory Commission (FERC Commission) – which, with the recent confirmation of Democrat Willie Phillips, now has a Democratic majority – it is likely that FERC will adopt a proactive role in scrutinizing the foreseeable upstream and downstream greenhouse gas emissions of natural gas pipeline project applications. It is therefore likely that such applications will confront a more rigorous, and timely, review process at FERC. This enhanced review process is relevant to Israeli companies that might be looking to invest in U.S. interstate natural gas pipelines. Read full article >>
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GSA Mandates Disclosure of Foreign Ownership/Financing of High-Security Leased Spaces By Ronald A. Oleynik, Libby Bloxom and Robert C. MacKichan Jr. The General Services Administration (GSA) rule imposes disclosure requirements regarding the foreign ownership of prospective lessors of and foreign financing of “high-security leased space” (property leased to the U.S. government having a security level of III or higher). In addition, the rule imposes access limitations on foreign-owned lessors. The rule was passed as a direct result of a 2017 Government Accountability Office (GAO) report, which revealed certain federal agencies were not aware that their high-security spaces were located in foreign-owned buildings, including buildings owned by Israeli companies. Given the GSA rule applies not only to new leases, but also to 1) the extension of a current lease, 2) exercising an existing renewal option or 3) when purchasing a U.S. government-occupied building, Israeli companies or persons that currently lease or are considering to lease high-security spaces to the U.S. government should be cognizant of these disclosure requirements. Moreover, as Israel’s foreign direct investment (FDI) in the United States continues to increase each year ($14.6 billion in 2019, up 4.2 percent from 2018), Israeli companies investing in the United States should be aware of the GSA rule, particularly given its disclosure obligations also apply to foreign-financed leases. Read full article >> Reprinted with permission from Pratt’s Government Contract Law Report
Important FTC Rules for Health Apps Outside of HIPAA By Marissa C. Serafino, Ashley Lauren Thomas and Shannon Britton Hartsfield The United States has myriad state and federal laws and rules that apply to health data. The applicability of these laws to particular data varies based upon the nature of the information and the type of entity using or disclosing it. For companies in Israel holding health-related information on individuals in the United States, there are likely to be federal laws affecting how the information must be handled. For app developers providing health-related services that are not subject to the Health Insurance Portability and Accountability Act (HIPAA) privacy and security rules, Federal Trade Commission (FTC) breach notification rules could apply. The FTC recently issued a policy statement that is relevant for Israeli companies operating outside of HIPAA that offer digital health apps in the United States. Read full article >>
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COVID-19 Insights Holland & Knight in partnership with the Israel-America Chamber of Commerce keeps you updated on pertinent AmericanIsraeli topics relating to legal considerations and federal funding opportunities in connection with the coronavirus (COVID-19). Please see COVID-19 Focus on Israel on our website for the latest updates.
Media Mentions and Speaking Engagements Agro Tech & Food Tech Innovations in Miami & Israel, Venture Café Miami session hosted by SoFlo-Israel Tech Innovation Entrepreneurship Council and Jewish National Fund-USA, Meital Stavinsky, November 18, 2021 COVID Vaccine Maker Adds New Lobbying Help, Politico, Ron Klein, November 11, 2021 Who Got the Work, National Law Journal, Meital Stavinsky, November 8, 2021. (Holland & Knight is the registered lobby for the energy storage company Nostromo Energy on issues related to the investment tax credit in the Democrats’ proposed sweeping social spending bill. The filing lists Partner Meital Stavinsky and Todd Wooten along with Senior Policy Advisor Beth Viola as lobbyists.)
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A Strong Commitment to the State of Israel Holland & Knight is a U.S.-based global law firm with a strong commitment to the state of Israel. We focus on providing guidance to Israeli investors and companies interested in doing business in the United States and Latin America. With more than 1,600 professionals in 31 offices, the lawyers and professionals in our Israel Practice are highly experienced in all of the interdisciplinary areas necessary to guide an entrepreneurial or an established company through the opportunities and challenges that arise throughout the company’s life cycle. Areas of legal guidance that are typically provided to our Israel Practice clients include real estate, mergers and acquisitions, private equity, international tax, cross border and customs, internet privacy and cybersecurity, intellectual property, government lobbying, regulations and compliance, reimbursement, U.S. Foreign Corrupt Practices Act (FCPA), U.S. Foreign Account Tax Compliance Act (FATCA), and litigation and dispute resolution. Among our Israeli clients are leading innovative technology companies in a wide range of industries, including information technology, advanced transportation, agtech, cleantech, healthcare and life sciences, medical devices and cybersecurity. Our Israeli real estate clients are leading commercial and residential developers and investors, and Holland & Knight’s venture capital and private equity attorneys advise both Israeli funds and U.S. funds investing in Israeli companies. A core value of Holland & Knight is our dedication to delivering the highest quality of legal services and providing responsive and cost-effective counsel to every client. This core value of the firm – coupled with our business acumen, legal experience and solid commitment to the Israeli marketplace – enables us to successfully assist our Israeli clients operating in the United States, as well as companies and investors doing business in Israel. The members of our team have client and business meetings in Israel on a regular basis and would be delighted to arrange for a meeting in person. Please do not hesitate to reach out to us with any questions, as we look forward to helping you excel and achieve your business goals in the U.S. and Latin America.
מחויבות עמוקה למדינת ישראל אנו מתמקדים במתן שירותי יעוץ למשקיעים וחברות ישראליות. הינה פירמת עורכי דין אמריקאית גלובלית בעלת מחויבות עמוקה לשוק הישראליHolland & Knight עורכי דין ואנשי מקצוע1,600- מעסיקה למעלה מHolland & Knight פירמת עורכי הדין.המעוניינים להרחיב פעילות או להשקיע בארצות הברית ובאמריקה הלטינית ומספקים מגוון, הפוליטיקה והסביבה החברתית בישראל, הינם בעלי הבנה עמוקה של הכלכלהHolland & Knight חברי הפרקטיקה הישראלית של. משרדים31-ב לחברי הפרקטיקה הישראלית שלנו ניסיון רב בכל תחומי המשפט.רחב של שירותים משפטיים ללקוחות ישראלים שפועלים בחו"ל ולחברות ומשקיעים הפועלים בישראל . חברות הזנק וחברות מבוססות בכל שלבי ותהליכי הצמיחה וההתפתחות של החברה, משקיעים,הנחוצים כדי להנחות יזמים פרטיות ואבטחת, מסחר בינלאומי ומכסים, מיסוי בינלאומי, קרנות השקעה, מיזוגים ורכישות, נדל"ן,התחומים בהם אנו מייעצים ללקוחותינו הישראלים כוללים בין היתר . סיוע ביישוב סכסוכים עסקיים וליטיגציה,FATCA - וFCPA לרבות, ייעוץ לוביסטי ורגולטורי, קניין רוחני,מידע , אנרגייה, מים, סביבה, חקלאות, תחבורה חכמה, לרבות בתחומי טכנולוגיות מידע ותקשורות,בין לקוחותינו הישראלים נמנות חברות מובילות בתחומי החדשנות הטכנולוגית עם. עם לקוחות הנדל"ן שלנו נמנים משקיעים וחברות מובילות העוסקים הן בנכסים לשימוש מסחרי והן בנכסי נדל"ן למגורים. ציוד רפואי ואבטחת מידע,מדעי החיים .לקוחותינו בתחומי ההון סיכון וקרנות השקעה נמנות קרנות ישראליות וקרנות זרות המשקיעות בישראל ערך מרכזי. הוא מחויבותנו להעניק שירותים משפטיים באיכות הגבוהה ביותר ולספק יעוץ אישי המותאם לצרכיו של כל לקוח ולקוחHolland & Knight ערך מרכזי של מאפשרים לנו לסייע בהצלחה ללקוחותינו הישראלים הפועלים בארצות הברית- הניסיון המשפטי ומחויבותנו האיתנה לשוק הישראלי,זה בשילוב האינטיליגציה העסקית נפגשים עם לקוחות בישראל באופן קבוע וישמחו, שחלקם דוברי עברית, חברי הפרקטיקה הישראלית שלנו. ולחברות ומשקיעים הפועלים בישראל,ובאמריקה הלטינית .לתאם פגישות עם חברות ויזמים המעוניינות ללמוד על הדרכים בהן נוכל לסייע להצלחת מיזמים עסקיים בארצות הברית ובאמריקה הלטינית
For inquiries regarding this newsletter, you may contact: Ronald J. Klein Co-Chair, Israel Practice Fort Lauderdale +1.954.468.7874
Meital Stavinsky Co-Chair, Israel Practice Miami +1.305.789.7710
Washington, D.C. +1.202.469.5152 ron.klein@hklaw.com
Washington, D.C. +1.202.828.5004 meital.stavinsky@hklaw.com 6
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