The legislation would give South Carolina oversight of insurance rates offered through its federal exchange and require healthcare navigators, which help people sign up for the healthcare benefits, to be licensed by the state, said Davis, who chairs the committee drafting the measure.
The state's 2014 legislative session opens on Tuesday.
"Even though the federal government may pass a law, and even though that law may be constitutional, that doesn't mean that the federal government can direct the state to spend state dollars to implement it," he said. "States aren't simply political subdivisions of the federal government."
Six states have barred their employees from helping implement the law known as Obamacare, said Richard Cauchi, healthcare program director for the nonpartisan National Conference of State Legislatures.
At least eight states, including two that support the healthcare reforms, have regulated navigators, he added.
The new laws are mostly legally untested, Cauchi said.
"Florida and Ohio have said: 'We will have nothing to do with this law; we won't make it workable,'" he said.