§ 65. Rules and regulations. 1. The board of supervisors shall by
local law adopt rules and regulations not inconsistent with law for the
fair and equitable administration and operation of the plan. Such rules
and regulations may provide standards and conditions with respect, but
not limited, to (a) entry and withdrawal of participants, (b) medical
examinations, (c) safety programs, (d) reports by participants and (e)
cooperation by participants, provided, however, that such rules and
regulations, or failure to adopt the same, shall not prevent withdrawal
of a participant from the plan upon the condition that such participant
shall pay, in a lump sum or in installments, an equitable share of the
outstanding liabilities of the plan as of the date of withdrawal. Any
payments required upon entry to or withdrawal from a plan may be
financed, in whole or in part, by any municipal corporation or district
corporation by the issuance of bonds or capital notes pursuant to the
local finance law.

2. Such rules and regulations may also provide that for any violation
thereof or of this chapter, a participant may be expelled from the plan
or be charged with a penalty. Any such penalty shall be collected at the
same time and in the same manner as other charges against participants
as provided in section sixty-seven of this chapter, or in such other
manner as may be provided in such rules and regulations. A participant
liable for the payment of a penalty may by action of its governing body
elect to recover the amount thereof from the public officer or employee
whose act or failure to act resulted in the imposition of such penalty.
In such event, the amount of the penalty may be withheld from the salary
or other remuneration payable to such officer or employee.