(1) All fines and forfeitures collected upon conviction or upon forfeiture of bail of any person charged with a violation of any of the provisions of this chapter constituting a misdemeanor shall be deposited in the treasury of the county, city, or town maintaining the court wherein the conviction or forfeiture was had in a special fund to be known as the “highway improvement fund”.
(2) The fund is created and shall be used exclusively in the construction, maintenance, and repair of public highways and highway structures or for the installation and maintenance of traffic control devices thereon within the respective jurisdictions.
(3) Failure, refusal, or neglect on the part of any judicial or other officer or employee receiving, or having custody of, such fine or forfeiture, either before or after a deposit in the fund, to comply with the provisions of this section shall constitute misconduct in office and shall be grounds for removal.