5 U.S.C. § 1304 — Loyalty investigations; reports; revolving fund

(a) The Office of Personnel Management must conduct investigations and issue reports required by (1) sections 272b, 281b(e), and 290a of title 22; (2) section 1874(c) of title 42; and (3) section 1203(e) of title 6, District of Columbia Code. (b) If an investigation shows information suggesting the person’s loyalty is questionable, the Office must refer the matter to the FBI for a full field investigation. The FBI must give its report to the Office for information and appropriate action. (c) When the President finds it in the national interest, the President may have required group or class investigations conducted by the FBI instead of the Office. (d) The FBI, rather than the Office, must conduct the investigation and report for positions the Secretary of State certifies are highly important or sensitive. (e) (1) A revolving fund, available to the Office without fiscal-year limitation, finances investigations, training, and other reimbursable functions, including personnel-management services requested by agencies that otherwise would perform them or by nonappropriated-fund instrumentalities, and audits, investigations, and oversight by the Office Inspector General of the fund and funded activities. In any fiscal year, the fund may finance only functions covered by the budget estimates submitted to Congress for that year. As far as feasible, each activity must generally be run on an actual-cost basis over a reasonable period. (2) Fund capital consists of (A) appropriations authorized to provide capital and (B) the fair and reasonable value of supplies, equipment, and other assets transferred to the fund, including unspent activity funds, minus related liabilities, unpaid obligations, and employees’ accrued annual leave attributable to those activities. (3) The fund is credited with (A) advances and reimbursements from Office or other agency funds or other sources for services and supplies at rates estimated to recover operating expenses, including accrued leave and equipment depreciation, and (B) property-sale or exchange receipts and payments for property loss or damage accounted for under the fund. (4) Unobligated and unexpended balances the Office finds unnecessary must be deposited in the Treasury as miscellaneous receipts. (5) (A) The Office must prepare a business-type budget fully showing operating results for each funded function and send it to Congress for consideration as provided for wholly Government-owned corporations. (B) The budget must include the Inspector General’s estimate of audit, investigation, and other oversight expenses for the fund and its activities. (C) That estimate may not exceed 0.33 percent of the Office’s requested total budget authority. (6) After periodic reviews of funded activities, the Comptroller General must report and make appropriate recommendations to the Senate Committee on Governmental Affairs and House Committee on Post Office and Civil Service. (f) An agency may use available appropriations to reimburse the Office or FBI for investigations, training, and functions performed for it, or advance their costs. These amounts must be credited directly to the applicable Office or FBI appropriations. (g) This section does not change the FBI’s responsibility to investigate espionage, sabotage, or subversive acts.