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(1) If a written response is received by the state or other governmental entity within 21 days from the date of the notice required by Section 63A-3-303 and a hearing is requested in the written response, the state or other governmental entity shall:
(a) set a hearing date within 28 days of the receipt of the response; and
(b) mail written notice of the hearing to the debtor at least 14 days before the date of the hearing.
(2) Notwithstanding Subsection (1), the state or other governmental entity is not required to set a hearing if the state or governmental entity releases its lien.