The bill prescribes penalties for those who blame Poles as a nation for crimes committed by Nazi Germany during World War II.
Relations between the two countries have been greatly strained by the Polish government's decision to push forward with the legislation. To become law, it must be signed by President Andrzej Duda.
However, some incidents of collaboration and pogroms undertaken by sectors of the Polish population were undeniably taking place, yet admitting this remains controversial in contemporary Poland.
Neumann, head of the party's parliamentary caucus, also described the constitutional court as a body without independence that will rule as the governing party wants.
Not surprisingly, the bill has been widely opposed by the United States and Israel.
But it adds the caveat that a person "is not committing a crime if he or she commits such an act as part of artistic or scientific activities".
The bill would set fines or a maximum three-year jail term for anyone who refers to Nazi German death camps as Polish.
Prime Minister Benjamin Netanyahu has denounced the bill as a "distortion of the truth, the rewriting of history and the denial of the Holocaust".
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After having his upcoming trip to Warsaw cancelled by the Polish government on Monday due to his strong criticism of the law, Israel's hard-right education minister, Naftali Bennet, said he was "honored".
"The Polish government canceled my visit to Poland because I mentioned the crimes of its people. The existence of certain collaborators does not change anything", Gabriel said. "The Polish government chose to avoid this truth".
Polish politicians have expressed bafflement at the Israeli response.
Israel said it still hoped Poland would make amendments.
But anti-Semitism grew virulent in the decades before the war, driving many Polish Jews to emigrate. "This truth needs to be protected", he said.
Poland's ruling Law and Justice party vowed to push through a law regulating public statements about the country's Holocaust experience soon after it came to power in 2015.
Poland was attacked and occupied by Nazi Germany.
Some risked their lives and those of their families to shelter Jews; almost 7,000 have been recognized as "Righteous Among the Nations" by Israel's Yad Vashem Holocaust Remembrance Center.
However, historians say others were complicit by acts such as informing on Jews in hiding for rewards, and participating in Nazi-instigated massacres including in Jedwabne where hundreds of Jews were murdered by their neighbours. After the Jews, the non-Jewish Poles were the second group targeted by the Nazis for slave labour and, in many cases, extermination.