It was approved by a committee today.
Beach delegate Ron Villanueva wants a sports authority to issue bonds to raise money for the proposed arena.
Now the city scrapped the idea of an arena last month when they couldn't get a sports team to commit to coming to the resort city.
Mayor Will Sessoms said he wouldn't be asking the state for funding for an arena without a team commitment.
The mayor said he'd be willing to pursue the idea in the future.
The House has already approved the bill which would use income from the arena and a sales tax revenue increase to pay back the debt.