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No law has been passed yet, this is a "proposal for a parliamentary resolution" (þingsályktunartillaga). Which basically means that parliament has expressed formal interest in getting legislation drafted to implement this.

How that legislation will look will depend on a lot of committee work down the road, and what parliament actually ends up passing is another open question.

Still, this proposal has the backing of several ministries, so there's a large change that something good will be passed. But whether it'll fulfill all the promises of the IMMI plan remains to be seen.