Section 65 - Rules and regulations1. 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.N.Y. Work. Comp. Law § 65