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The neighboring University of Southern California currently uses the stadium under a 25-year lease that can be renewed for another 22 years.
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A Senate analysis of the bill also cast doubt on the sale, saying a buyer could have trouble assuming control of the coliseum until the commission's lease expires in 2054.
Sen. Alex Padilla, D-Los Angeles, denied that the coliseum is underutilized, noting that more than 115,000 people watched a Dodgers-Boston Red Sox exhibition game there in March.
"A crowd of 100,000 is not uncommon," he said. "This building by no means is an irrelevant facility. This is by no means an outdated facility. ... Sure, some upgrades are warranted. But it should achieve its potential while still in the hands of the people."
The Senate voted 21-16 against the bill, but agreed to allow Denham to take a second vote at a later time if he chooses.
Denham also has proposed selling several other properties owned by the state. Those include San Quentin State Prison, part of the Cow Palace site in Daly City and a wastewater treatment plant at Soledad State Prison.
"We know that we have thousands of excess parcels of property around this state," said Sen. Tom Harman, R-Huntington Beach. "It's about time we seriously started looking at them ... and get rid of underutilized and excess properties."
