The Merit Systems Protection Board (MSPB) and the Office of Personnel Management (OPM) jointly propose to modify their regulations on what the Board will review, and what OPM will direct agencies to consider, when determining the appropriateness of a penalty imposed on an employee for actions taken under 5 USC 7513. The MSPB is proposing to modify its regulations at subpart B of Part 1201 to streamline its review of agency penalty determinations, reconsidering the test the Board adopted in Douglas v. Veterans Administration, 5 MSPB 313, 5 MSPR 280 (1981). OPM is proposing to modify its regulations at subpart D of Part 752 to explicitly reference and direct agencies to only consider those factors or other relevant issues identified by the MSPB in its proposed regulations.