Israeli courts, which try Israeli citizens, including Palestinian citizens of Israel, can choose between life imprisonment or the death penalty in cases of murder aiming to harm Israeli citizens and residents or "with the intent of rejecting the existence of the state of Israel."
Amichai Cohen, a senior fellow at the Israel Democracy Institute's Center for Democratic Values and Institutions, said this distinction is discriminatory.
"It will apply in territories with military courts, which are Palestinian courts. It will apply in Israeli courts, but only to terrorist activities that are motivated by the wish to undermine the existence of Israel. That means Jews will not be indicted under this law," he said.
Cohen added that under international law, Israel's parliament should not be legislating in the West Bank, which is not sovereign Israeli territory. Many in Netanyahu's far-right coalition seek to annex the West Bank to Israel.
The lawyer for the parliament's National Security Committee raised several concerns during earlier deliberations, noting that it does not allow clemency, contradicting international conventions. The bill says executions should be carried out within 90 days of sentencing.