Naval Investigations and Intelligence Reorganization Act of 1985

Naval Investigations and Intelligence Reorganization Act of 1985 - Abolishes the Naval Investigative Service (NIS) within the Department of the Navy. Transfers the waste or fraud functions of NIS to the Inspector General of the Navy. Transfers the security and counterintelligence functions of NIS to the Security and Counterintelligence Command (established in this Act). Transfers the criminal investigation functions of NIS to the Criminal Investigations Command (established in this Act). Transfers any remaining functions of NIS to appropriate entities within the Department of the Navy.

Directs the Secretary of the Navy to establish a Security and Counterintelligence Command to perform all security and counterintelligence functions within the Department.

Directs the Secretary to establish a Criminal Investigations Command to perform all criminal investigation functions within the Department. Directs the Secretary to prescribe regulations requiring a certain degree of severity before the Criminal Investigations Command will undertake an investigation. Directs the Criminal Investigations Command to prepare annual plans concerning fraud prevention activities.

Provides that the Inspector General of the Navy shall be the only official within the Department responsible for waste or abuse investigations within the Navy.

Directs the Secretary to report annually to appropriate committees of the Congress on the activities during the preceding year of the Inspector General of the Navy, the Security and Counterintelligence Command, and the Criminal Investigations Command.