Section 65. §s 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.