The Knesset plenum on Wednesday voted against the conversion bill draft brought by Kadima MKs Yohanan Plessner and Yoel Hasson.
Twenty-two lawmakers voted for the bill, while 48 MKs voted against it.
Kadima MK Yoel Hasson addressed the plenum before the vote, and criticized Prime Minister Binyamin Netanyahu for failing to resolve the issue.
"You cannot hide behind your coalition partners, because this is not leadership. The Israeli public expects that you will solve this problem and lead us to a situation where we will be able to convert those who need to be converted," Hasson said.