There is no such law. It's against the law to proselytize minors, or to pay for conversion, but thats it.
If their intent was to cause a confrontation, likely as this neighborhood isn't fertile ground for proselytization, I suppose that could become a visa issue. Obviously the choice of what to do is theirs.
Well, you could be right. But my understanding is that in keeping with the broad wording of the 1977 "anti-proselytizing law," the giving of money (amount unspecified) or of any equivalent of money (again, unspecified) or any other benefit to a person (age unspecified), for the purpose of inducing conversion to another religion is punishable by a large fine or by several years imprisonment.
Under this broadly worded statute, the giving of a 2-page tract to any person could qualify as an offense, as could the feeding, clothing and sheltering of indigent persons -- a Christian practice common in Israel.
I looked in vain for a searchable Israeli statute site, so I can't produce the actual text of the law. Perhaps you can find one.
Here is a US Department of State article that generally explores this subject.