The state treasurer or any other state officer so designated shall make complete allocations from highway user revenues to only those cities, cities and counties, or towns which have complied with all the requirements of this part 1. The state agency or department designated in this part 1 to receive reports shall inform the cities, cities and counties, or towns in writing, by certified mail, of any delinquencies in reporting and shall forward a copy of such notice to the state treasurer. Delinquent cities, cities and counties, or towns shall be allowed a grace period of sixty days after date in which to rectify the delinquency. If the required reports have not been received at the end of the sixty-day grace period, the state treasurer shall withhold the moneys due to such cities, cities and counties, or towns until he has been informed that the required reports have been received. Payments withheld will be paid to the cities, cities and counties, or towns upon receipt of the delinquent reports.
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