Senate Bill 562 would substantially remake the health care system by eliminating health care insurance companies and guaranteeing coverage for everyone.

The legislation would create a single-payer health care system, provide health insurance to all California residents regardless of immigration status and allow state regulators to negotiate drug costs with the pharmaceutical industry.

But, according to the report in the Sacramento Bee, Assembly Speaker Anthony Rendon put the brakes on a sweeping plan to overhaul the health care market in California Friday, calling the bill “woefully incomplete.”

Rendon announced plans to park the bill to create a government-run universal health care system in Assembly Rules Committee “until further notice” and give senators time to fill in holes that the bill does not currently address.

“Even senators who voted for Senate Bill 562 noted there are potentially fatal flaws in the bill, including the fact it does not address many serious issues, such as financing, delivery of care, cost controls, or the realities of needed action by the Trump administration and voters to make SB 562 a genuine piece of legislation,” Rendon said.

Democratic Sens. Ricardo Lara and Toni Atkins, who introduced the proposal, acknowledged the bill was dead for the year. Lara and Atkins had described the bill as a work in progress when it passed the Senate earlier this month without a funding plan. A legislative analysis pegged the cost at $400 billion.

The abrupt announcement shields members of the Assembly from having to take a difficult vote that could be used against them by critics or supporters of the policy.

The decision serves a major blow to the California Nurses Association, a vocal supporter of the legislation, and is unlikely to endear Rendon to newly energized activists within his Democratic Party, who greeted him with loud boos at the state convention last month.

But Rendon said he was encouraged by conversations the bill started.

“Because this is the first year of a two-year session, this action does not mean SB 562 is dead,” Rendon said. “In fact, it leaves open the exact deep discussion and debate the senators who voted for SB 562 repeatedly said is needed.”

“We are disappointed that the robust debate about health care for all that started in the California Senate will not continue in the Assembly this year,” Lara and Atkins said in a statement. “This issue is not going away, and millions of Californians are counting on their elected leaders to protect the health of their families and communities.”

Rendon said the effort to create a universal health care system is moving on other fronts, and that supporters had talked about possibly crafting an initiative for the 2018 ballot. In response, the nurses said they will work to revive the bill in the Legislature and declined to discuss options for an initiative.

The health care debate also has flared up in the governor’s race. Former Los Angeles Mayor Antonio Villaraigosa compared unfunded health care promises to “snake oil,” a not-so-veiled blow at rival Lt. Gov. Gavin Newsom, who has pledged to support a universal health system if elected governor.