Provides certain liability protections for foster care agencies that are under contract with the State to provide foster care services to children in foster care. Requires contracts between foster care agencies and the State to include a state indemnification clause and requires foster care agencies to name the State as an additional insured. Prohibits punitive damages and pre- and post-judgment interest for foster care agencies. Requires actions against foster care agencies to be tried by the court, except in certain circumstances. Removes joint and several liability for foster care agencies. Specifies that no bond shall be required from a foster care agency on appeal.