Section 3032. Civil damages for failure to release a lien

(a) In general.
  A taxpayer may bring a civil action for damages against the state in the
  court of claims if any officer or employee of the department  knowingly,
  or  by reason of negligence, fails to release a lien on property of such
  taxpayer within forty days after the day on which (1)  the  commissioner
  finds that the liability for the amount assessed or determined, together
  with  all  interest  in respect thereof, has been fully satisfied or has
  become  legally  unenforceable,  or  (2)  there  is  furnished  to   the
  commissioner  a  surety  bond issued by a surety company approved by the
  superintendent  of  insurance  as  to  solvency  or  responsibility  and
  authorized  to  transact  business  in  this  state,  or  other security
  acceptable to the commissioner, that is conditioned upon the payment  of
  the amount assessed or determined, together with all interest in respect
  thereof,  within  the time prescribed by law (including any extension of
  such time) and is in  accordance  with  such  requirements  relating  to
  terms, conditions, and form of the bond or other acceptable security, as
  may be specified by regulation.
    (b)    Damages.    In any action brought under subdivision (a) of this
  section, upon a finding of liability on the part of the  defendant,  the
  defendant shall be liable to the plaintiff in an amount equal to the sum
  of (1) actual, direct economic damages sustained by the plaintiff which,
  but  for  the  actions  of the defendant, would not have been sustained,
  plus (2) the costs of the action.
    (c)   Limitations. (1) Exhaustion of  administrative  remedies.    The
  amount  of  damages awarded under subdivision (b) of this section may be
  reduced if the court determines that the plaintiff has not exhausted the
  administrative  remedies  available  to  such   plaintiff   within   the
  department  which  have  been established pursuant to the commissioner's
  authority  to  compromise  civil  liability  provided   in   subdivision
  eighteenth-a  of  section  one  hundred seventy-one of this chapter.  In
  establishing  administrative  review  procedures  regarding  claims  for
  damages under this section, the commissioner is authorized to enter into
  contracts  with  private  dispute resolution entities for the purpose of
  providing review of such claims and suggested compromises by independent
  third parties.
    (2)   Mitigation of damages.   The amount  of  damages  awarded  under
  paragraph one of subdivision (b) of this section shall be reduced by the
  amount of such damages which could have reasonably been mitigated by the
  plaintiff.
    (d)    Notice  of  failure to release lien.  The commissioner shall by
  regulation prescribe reasonable procedures for a taxpayer to notify  the
  commissioner  of  the  failure  to release a lien on the property of the
  taxpayer.