Ultra-right MK Katz has withdrawn his draft bill, which would have legalized all outposts built with government financing, providing compensation to Palestinian landowners. This bill was common sense: to all practical purposes, government financing means government authorization. The bill had a good chance of passing the Knesset, and in any case would have exposed the pseudo-right Likud MKs who voted against it.
Under some political pressure and citing a request from his rabbi (who apparently is ready to sacrifice Zionist religious values) Katz abandoned his drive.