Holland & Knight - Israel Practice Newsletter: Spring 2021

ISRAEL PRACTICE NEWSLETTER

SPRING 2021

TABLE OF CONTENTS Introduction..............................................................................................................................................................................2 Advertising on Social Media Regulation: Comments from an FTC Official..................................................................................2 Immigration Under Biden Administration...................................................................................................................................3 Biden Administration Tax Priorities: Prospects for Enactment....................................................................................................3 Joe Biden’s FinTech Innovation Policies to Get Bipartisan Support............................................................................................4 President Biden Signs Executive Order Strengthening Buy American Rules..............................................................................4 2021 Clean Energy Outlook......................................................................................................................................................5 FAA Releases Two Final Rules to Advance Drone Integration....................................................................................................5 U.S. Cannabis Regulation Trends in 2021.................................................................................................................................6 COVID-19 Insights....................................................................................................................................................................6 Media Mentions and Speaking Engagements...........................................................................................................................7

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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 1,400 professionals in 27 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.

Advertising on Social Media Regulation: Comments from an FTC Official

By Anthony E. DiResta, Da’Morus A. Cohen and Benjamin A. Genn Holland & Knight hosted Michael Ostheimer, a senior attorney for the Federal Trade Commission (FTC), for a webinar presentation on Feb. 16, 2021. Ostheimer has been with the FTC for three decades, currently serving as a senior staff attorney with the FTC’s Division of Advertising Practices. During the interview, Holland & Knight Partners Anthony DiResta and Da’Morus Cohen asked Ostheimer dozens of questions covering a broad range of topics concerning social media advertising and marketing practices. Importantly, these compliance issues touch upon every industry sector in the U.S. economy, including financial services, healthcare and life sciences, retail, technology, hospitality and tourism, transportation, education, media, technology, telecommunications and manufacturing.

The FTC’s focus is on the integrity of the communications from the marketer to the consumer – whether the communications are accurate, transparent and nondeceptive. In other words, brands must tell the truth, not exaggerate any claims, and be transparent through disclosures and disclaimers.

Importantly, in the consumer protection area, the FTC’s Office of International Affairs works with foreign law enforcement agencies on investigations and cases to halt deceptive and anticompetitive business practices that affect U.S. consumers, including those in the advertising and marketing space. Through arrangements and agreements with consumer protection enforcement agencies in foreign countries, including Israel, and through multilateral organizations, the FTC engages in information sharing and investigative cooperation for law enforcement actions.

Israel’s Consumer Protection and Fair Trade Authority is an independent, governmental authority, established by the Consumer Protection Law (1981) and is responsible for: monitoring the implementation of the provisions of the Law; investigating violations and bringing offenders to justice; initiating procedures of administrative enforcement; handling complaints; conducting surveys and research; and handling other consumer protection issues that are not the responsibility of other authorities.

Read full article >> 2

Immigration Under Biden Administration

By Tara L. Vance The United States under former President Donald Trump and COVID-19 quarantines became a restrictive country for immigrants and immigration such that what were once normal opportunities were scaled back significantly if not halted all together. We are starting to see some positive changes for immigrants and immigration and this substantially affects all Israelis, including visitors, students and Israeli companies doing business in the U.S. or wanting to do business in the US. In 2021, Holland & Knight has issued three employer alerts detailing changes in immigration.

While these alerts are not specifically focused on Israel, most of the restrictive measures taken by the prior administration were applicable to Israel. As such, it is important to be aware of the recent changes so that Israeli nationals and businesses can take advantage of the immigration-related opportunities available in the United States.

Read full article: Part 1 >> Read full article: Part 2 >> Read full article: Part 3 >>

Biden Administration Tax Priorities: Prospects for Enactment

By Alan Winston Granwell, Ronald J. Klein, William M. Sharp and Meital Stavinsky For the first time since 2011, the Democrats control the executive branch and both houses of Congress. Democratic control increases the legislative prospects for passage of some of the Biden Administration tax priorities, although the slim margins by which the Democrats control the House and the Senate circumscribe the types of tax proposals that may be enacted.

This article reviews the electoral developments that resulted in Democratic control of the White House and legislative branches, outlines the Congressional pathways for enactment of tax legislation, provides an overview of the tax priorities of the Biden Administration and offers comments on the prospects for enactment of tax legislation.

Read full article >> Reprinted with permission from International Bar Association

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Joe Biden’s FinTech Innovation Policies to Get Bipartisan Support

By Meital Stavinsky and Ronald J. Klein On his first day as U.S. president, Joe Biden made it a point to highlight his fight against inequities in the financial services industry, echoing statements repeatedly made on his campaign trail. President Biden published his “Day One Executive Actions” on his inauguration day and noted that advancing racial equity and supporting underserved communities were among the key pillars of his near-term agenda, along with providing economic relief and support to working families.

One of the innovative platforms to facilitate such equality in the areas of access to capital and financial services is financial services technology, otherwise known as FinTech. Israel, a recognized leader in FinTech innovations worldwide, could serve a pivotal role in this evolving landscape in the U.S. as new policies are formed.

Read full article >> Reprinted with permission from The Jerusalem Post

President Biden Signs Executive Order Strengthening Buy American Rules

By Nasim D. Fussell and Ronald A. Oleynik As rumors were circulating last year that the Trump Administration was considering withdrawal from the World Trade Organization (WTO) Agreement on Government Procurement (GPA), President Joe Biden was campaigning to fight for American workers by delivering on “Buy America.” In a September 2020 document outlining his plan, Biden pledged to use authorities under the Defense Production Act and Federal Property and Administrative Services Act of 1949 to enforce Buy American rules; expand and tighten Buy America rules for public infrastructure projects; make American products more competitive in public procurement; expand the scope of critical materials that must be made with U.S. origin components, beyond critical medicines; crack down on false country of origin labeling; and create a new “Made in America” office with the White House Office of Management and Budget. Biden promised to sign executive actions in his first week in office, signaling that he would take early action to implement his plan. As the United States barreled toward Election Day last November, U.S. trading partners and WTO GPA parties were wondering whether the U.S. federal procurement market would remain open to them.

On Jan. 25, 2021, with the election and Inauguration Day behind him, President Biden followed through on his promise to take executive action quickly. The Jan. 25 Executive Order put into motion many of President Biden’s campaign pledges, but it remains far from clear whether Israel and other U.S. trading partners will lose access to the nearly $600 billion federal procurement market in the United States. However, it is critical for Israeli companies to understand what may be coming and to prepare accordingly as near-term opportunities are expected for businesses, governments and other stakeholders to provide input on potential changes to the “Buy American” rules and regulations.

Read full article >> 4

2021 Clean Energy Outlook

By Taite R. McDonald, Beth A. Viola, Sydney Lauren Bopp and Hannah M. Coulter This Holland & Knight article provides an overview of U.S. Department of Energy (DOE) funding levels for this year and looks ahead to upcoming opportunities that companies can try to help shape or leverage over the coming months.

Included in the end-of-the year omnibus was a massive $2.3 trillion spending bill containing appropriations for Fiscal Year (FY) 2021. Every DOE program dedicated to clean energy research, development and deployment received an increase for FY 2021, making billions of dollars available through grants, cooperative agreements, loans and loan guarantees, and other federal support. The bipartisan package will foster innovation across a broad range of technologies that are critical to U.S. energy and national security, long-term economic competitiveness and the protection of the environment.

The Biden Administration and the 117th Congress will provide significant opportunities for Israeli companies and organizations focusing on all aspects of climate and clean technology.

Read full article >>

FAA Releases Two Final Rules to Advance Drone Integration

By Joel E. Roberson, Anita M. Mosner, Marina Veljanovska O’Brien and Ben Slocum The Federal Aviation Administration (FAA) had to review concerns about the safety of flights over people before it could freely permit drone flights beyond visual line of sight. In February 2016, the FAA empaneled an aviation rulemaking committee to provide a consensus recommendation for a federal regulatory framework for safe drone operations over people. (See Holland & Knight’s previous alert, “FAA Advisory Group Recommends Framework for Drone Flights Over People,” April 6, 2016.) The FAA’s intention to issue a proposed rulemaking by December 2016 was derailed during the interagency review process, with law enforcement agencies insisting that a remote identification standard be put in place before the FAA permitted such operations.

On Feb. 13, 2019, the FAA published the much anticipated Notice of Proposed Rulemaking (NPRM) to allow operations of small drones over people and at night, but noted that the NPRM could not be made final until a remote identification standard was in place. On Dec. 31, 2019, the FAA published its NPRM on remote identification. (See Holland & Knight’s previous Aviation Law Blog, “FAA Releases Drone Remote Identification Proposed Rule: The Long-Awaited Key to Unlock Flights Over People and Beyond Visual Line of Sight,” Dec. 27, 2019.)

The Final Rules reflect the FAA’s review of the comments received in response to each NPRM, and set forth the new standards for both operations over people and remote identification. The Final Rules were expected to go into effect on March 16, 2021. As a result of the recent Regulatory Freeze Memo issued by the White House, the effective date has been delayed until April 21, 2021, except for certain provisions pertaining to remote pilot certification and qualification, which are delayed until April 6, 2021. This Holland & Knight article summarizes the key provisions of each Final Rule.

Read full article >>

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U.S. Cannabis Regulation Trends in 2021

By Meital Stavinsky As devastating as 2020 has been, one industry has emerged with record growth, notwithstanding the pandemic, cannabis.

BDSA’s market forecast projects global cannabis sales for 2020 will reach $19.7 billion, an increase of 38 percent over 2019 sales. In the U.S., according to Marijuana Business Daily Research, by 2024, the yearly medical and recreational cannabis sales in the U.S. could reach as high as $37 billion.

Israel is a Cannabis-Tech powerhouse and is at the forefront of medical cannabis research. It is home to Prof. Raphael Mechoulam, a scientist at the Hebrew University of Jerusalem, who decades ago, among others, first isolated and identified the cannabis compound tetrahydrocannabinol (THC), a psychotropic cannabinoid best known for its mind-altering effects.

The results of the decades-long clinical trials conducted in Israel have had a tremendous global impact. Similar to other tech sectors, as the cannabis industry continues to grow in the U.S., there are clearly great opportunities for collaboration between Israel Cannabis-Tech companies and U.S. strategic partners.

Read full article >> Reprinted with permission from The Times of Israel

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.

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Media Mentions and Speaking Engagements Miami and Israeli Tech Leaders Discuss Life Science Innovations, South Florida Sun Sentinel, Meital Stavinsky, March 12, 2021 New Business Regulatory Trends in the Biden Administration: What Israeli Smart Cities Tech Companies with U.S. Operations Need to Know, Israel-America Chamber of Commerce, Consulate General of Israel in Miami, BDO Israel, Federation of Local Authorities in Israel, SelectUSA and Holland & Knight, Meital Stavinsky and Ronald Klein, March 4, 2021 U.S. & Israeli Innovations in the Life Sciences: Part 2, Jewish National Fund, Moderator Meital Stavinsky, March 2, 2021 Cannabis In The U.S.: The Future Looks More Promising Than Ever, Globes, Meital Stavinsky, February 11, 2021 Joe Biden’s FinTech Innovation Policies to Get Bipartisan Support, the Jerusalem Post, Meital Stavinsky and Ronald Klein, February 3, 2021 New Business Regulatory Trends in the Biden Administration: What Israeli Cannabis-Tech Companies with U.S. Operations Need to Know, Israel-America Chamber of Commerce, the Manufacturers’ Association of Israel, Deloitte Israel and Holland & Knight, Meital Stavinsky and Ronald Klein, February 2, 2021 New Business Regulatory Trends in the Biden Administration: What Israeli FinTech Companies with U.S. Operations Need to Know, Israel-America Chamber of Commerce, Holland & Knight and Citi Israel, Meital Stavinsky and Ronald Klein, January 12, 2021 U.S. Cannabis Regulation Trends in 2021, The Times of Israel, Meital Stavinsky, December 16, 2020

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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 1,400 professionals in 27 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 מקצוע‬1,400-‫ 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.‫ משרדים‬27-‫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 8

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