Establishes certain penalties on clinical laboratories regarding receipt of Medicaid overpayments, and on entities engaged in business with such clinical laboratories.

This bill imposes penalties on clinical laboratories that receive Medicaid overpayments (funds wrongly paid due to non-compliance with rules) totaling $100,000 or more. It bars such labs for 10 years from state contracts, grants, or business with state-funded entities, and permanently revokes licenses for overpayments of $1 million or more. The bill also requires the Department of Health to create a public database listing penalized labs, and bans any entity doing business with these labs from receiving state funds for five years. It directly affects clinical labs and their business partners who work with state Medicaid programs.