National Institute of Arthritis and Musculoskeletal and Skin Diseases Act of 1985

National Institute of Arthritis and Musculoskeletal and Skin Diseases Act of 1985 - Amends title IV (National Research Institutes) of the Public Health Service Act to establish a National Institute (Institute) of Arthritis and Musculoskeletal and Skin Diseases in the National Institutes of Health (NIH). Authorizes appropriations for FY 1986 for such establishment and related functions transfers.

States that the Institute shall conduct research and related activities concerning arthritis and musculoskeletal and skin diseases, including sports-related disorders. Requires the Director of the Institute, with the advice of the National Arthritis and Musculoskeletal and Skin Diseases Advisory Council, to establish a plan to coordinate such activities within 180 days. Requires the periodic review and revision of such plan and the transmission of such revisions to the Congress and the Director of NIH.

Establishes within the Institute a National Arthritis and Musculoskeletal and Skin Diseases Advisory Council.

Establishes within the Institute a National Arthritis Advisory Board (Advisory Board). Defines the responsibilities of the Advisory Board. Authorizes appropriations through FY 1988. Terminates the existing National Arthritis Advisory Board.

Establishes within the Institute: (1) an Arthritis and Musculoskeletal Diseases Interagency Coordinating Committee; and (2) a Skin Diseases Interagency Coordinating Committee. Requires annual reports to: (1) the Secretary of Health and Human Services; (2) the Director of NIH; (3) the Director of the Institute; and (4) the Advisory Council.

Establishes within the Institute: (1) the National Arthritis and Musculoskeletal and Skin Diseases Data System; and (2) the National Arthritis and Musculoskeletal and Skin Diseases Information Clearinghouse. Authorizes appropriations through FY 1988.

Authorizes appropriations through FY 1988 for arthritis and musculoskeletal demonstration projects.

Authorizes appropriations through FY 1988 for new and existing multipurpose arthritis and musculoskeletal diseases centers.

Requires the Institute to submit a biennial report to the President and the Congress.

Transfers arthritis and musculoskeletal and skin diseases functions, funds, personnel, and assets to the Institute from the existing National Institute of Arthritis, Diabetes, and Digestive and Kidney Diseases.

Redesignates the existing National Institute of Arthritis, Diabetes, and Digestive and Kidney Diseases as the National Institute of Diabetes and Digestive and Kidney Diseases.