Sacramento's new arena being built, USC's Galen Center and the San Diego area are the finalists to host the CIF state basketball championships in 2017 and 2018.
A decision will be announced in March during this year's state championships.
This year's finals are at Sleep Train Arena in Sacramento on March 24 and 26.
Ron Nocetti, the assistant executive director, said he is encouraged by the bids. San Diego State would host one year if San Diego won the bid.