Department of Justice Appropriation Authorization Act, Fiscal Year 1986

Department of Justice Appropriation Authorization Act, Fiscal Year 1986 - Authorizes appropriations for FY 1986 to the Department of Justice for: (1) general administration; (2) the United States Parole Commission; (3) general legal activities; (4) the Foreign Claims Settlement Commission; (5) the Antitrust Division; (6) United States Attorneys and Marshals; (7) support of United States prisoners in non-Federal institutions; (8) certain administrative expenses including notarial fees and compensation for witnesses and informants; (9) fees and expenses of witnesses; (10) the Community Relations Service; (11) the Federal Bureau of Investigation (FBI); (12) the Drug Enforcement Administration (DEA); (13) the Immigration and Naturalization Service; and (14) the Federal Prison System.

Provides general authorizations for: (1) leasing automobiles; (2) emergency expenses; (3) benefits for overseas employees; (4) official reception and representation expenses; (5) travel expenses for family members accompanying officers and employees on temporary duty or during orientation or training; (6) antiterrorism training; (7) Cuban and Haitian entrants; (8) travel advances issued to Special Agents of the Department of Justice; and (9) fees and expenses of witnesses activities.

Directs the Attorney General to perform periodic evaluations of the overall efficiency and effectiveness of the Department of Justice.

Authorizes the Attorney General to appropriate funds for the expenses necessary to host the meeting of the General Assembly of Interpol and to sponsor Interpol conferences on international crime.

Authorizes the Department of Justice to accept gifts of property for the purpose of aiding or facilitating the work of the Department of Justice. Imposes limitations.

Allows the Foreign Claims Settlement Commission of the United States to make payments from its appropriations for the hire of passenger motor vehicles and for advances of funds abroad.

Provides guidelines with respect to undercover investigative operations of the FBI and the prosecution of crimes against the United States and for the collection of foreign intelligence or counterintelligence. Permits establishment of corporations or business entities as part of an undercover operation. Establishes similar guidelines with respect to any undercover investigative operations of the DEA.

Requires the FBI and the DEA to report annually to the Congress on undercover investigative operations.