Section 3034. Civil damages for certain unauthorized collection actions

(a) General.  If, in connection with any  collection  of  any  tax  with
  respect  to  a  taxpayer,  any  officer  or  employee  of the department
  recklessly or intentionally disregards any provision of any tax, or  any
  regulation  promulgated under any of such taxes, such taxpayer may bring
  a civil action in the court of claims for  damages  against  the  state.
  Except  as provided in section three thousand thirty-two of this article
  relating to civil damages for failure to  release  a  lien,  such  civil
  action  shall  be  the exclusive remedy for recovering damages resulting
  from such actions.
    (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
  lesser  of  one  hundred  thousand dollars or the sum of (1) the actual,
  direct economic damages sustained by the plaintiff as a proximate result
  of the reckless or intentional actions of the officer or  employee,  and
  (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.