Protection and Advocacy for Mentally Ill Individuals Act of 1986 - Title I: Protection and Advocacy Systems - Part A: Establishment of Systems - Directs the Secretary of Health and Human Services to make allotments for establishing and administering State systems designed to protect and advocate the rights of the mentally ill. Sets forth the authorities such a system shall have.

Requires such a system to include the establishment of an advisory board.

Directs a State system to report to the Secretary on the activities, accomplishments, and expenditures of such systems annually.

Establishes a procedure for determining whether information from an individual's mental health records may be disclosed to him or her.

Requires such systems to exhaust all administrative remedies before initiating legal action on behalf of a mentally ill individual.

Part B: Administrative Provisions - Directs the Secretary to prescribe a formula for making such allotments. Requires the Secretary to provide technical assistance to such systems. Authorizes appropriations for FY 1986 through 1988.

Title II: Restatement of Bill of Rights for Mental Health Patients - Expresses the sense of the Congress that each State should review and revise, if necessary, its laws to ensure that mental health patients receive the protection and services they require. Advises the States to consider the recommendations of the President's Commission on Mental Health.

Title III: Construction - States that this Act shall not be construed as establishing any new rights for the mentally ill.

Title IV: Other Programs - Amends title III (General Powers and Duties) of the Public Health Service Act to direct the Secretary to promote family support groups for Alzheimer's disease patients and their families, and establish a nationwide network to coordinate such groups. Directs the Secretary to report to the Congress within one year on such activities.

Provides that nothing in this Act shall be construed as superseding any of the balanced budget provisions of the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act).

Title I: Mental Health Advocacy - Protection and Advocacy for Mentally Ill Individuals Act of 1985 - Directs the Secretary of Health and Human Services to make allotments for establishing and administering State systems designed to protect and advocate the rights of the mentally ill. Sets forth the authorities such a system shall have.

Requires such a system to include the establishment of an advisory board.

Directs the Secretary to prescribe a formula for making such allotments.

Directs the Secretary to report on the activities, accomplishments, and expenditures of such systems. Requires the Secretary to provide training, technical assistance, and evaluation services to such systems.

Authorizes appropriations for FY 1986 through 1988.

Amends the Public Health Service Act to require the chief executive officer of each State to certify that such system exists within the State in order to receive specified allotments.

Title II: Family Support Groups - Directs the Secretary to promote family support groups for Alzheimer's disease patients and their families, and establish a nationwide network to coordinate such groups. Directs the Secretary to report to the Congress within one year on such activities.

Title III - Provides that nothing in this Act shall be construed as superseding any of the balanced budget provisions of the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act).

Protection and Advocacy for Mentally Ill Persons Act of 1985 - Expresses the sense of the Congress that each State should review and revise its law to ensure that mental health patients receive the protection and services they require. Declares that States should consider the recommendations of the President's Commission on Mental Health in making such revisions.

Sets forth a bill of rights for mental health patients which includes the right to: (1) appropriate treatment; (2) an individualized treatment plan; (3) freedom from restraint or seclusion; (4) confidentiality of and access to records; and (5) privacy.

Declares that a patient's attorney or legal representative shall have access to: (1) the patient; (2) the facility; and (3) subject to the patient's written authorization, the records.

Permits States to apply for an allotment to establish a system to: (1) protect and advocate the rights of the mentally ill; and (2) investigate reported incidents of abuse and neglect.

Permits eligible systems to enter into contracts with State agencies and nonprofit organizations.

Establishes guidelines for access to and disclosure of information regarding the mentally ill.

Directs the Secretary of Health and Human Services to prescribe a formula for making allotments to such systems.

Directs the Secretary to report on the activities, accomplishments, and expenditures of such systems.

Authorizes appropriations for FY 1986 through 1988.

Repeals title V (Mental Health Rights and Advocacy) of the Mental Health Systems Act.

Protection and Advocacy for Mentally Ill Persons Act of 1985 - Expresses the sense of the Congress that each State should review and revise its laws to ensure that mental health patients receive the protection and services they require. Declares that States should consider the recommendations of the President's Commission on Mental Health in making such revisions.

Sets forth a bill of rights for mental health patients which includes the right to: (1) appropriate treatment; (2) an individualized treatment plan; (3) freedom from restraint or seclusion; (4) confidentiality of and access to records; and (5) privacy.

Declares that a patient's attorney or legal representative shall have access to: (1) the patient; (2) the facility; and (3) subject to the patient's written authorization, the records.

Permits States to apply for an allotment to establish a system to: (1) protect and advocate the rights of the mentally ill; and (2) investigate reported incidents of abuse and neglect.

Permits eligible systems to enter into contracts with State agencies and nonprofit organizations.

Establishes guidelines for access to and disclosure of information regarding the mentally ill.

Directs the Secretary of Health and Human Services to prescribe a formula for making allotments to such systems.

Directs the Secretary to report on the activities, accomplishments, and expenditures of such systems.

Authorizes appropriations for FY 1986 through 1988.

Repeals title V (Mental Health Rights and Advocacy) of the Mental Health Systems Act.

Protection and Advocacy for Mentally Ill Persons Act of 1985 - Expresses the sense of the Congress that each State should review and revise its law to ensure that mental health patients receive the protection and services they require. Declares that States should consider the recommendations of the President's Commission on Mental Health in making such revisions.

Sets forth a bill of rights for mental health patients which includes the right to: (1) appropriate treatment; (2) an individualized treatment plan; (3) freedom from restraint or seclusion; (4) confidentiality of and access to records; and (5) privacy.

Declares that a patient's attorney or legal representative shall have access to: (1) the patient; (2) the facility; and (3) subject to the patient's written authorization, the records.

Permits States to apply for an allotment to establish a system to protect the rights of the mentally ill. Requires such a system to include the establishment of an advisory board to advocate the rights of the mentally ill. Directs the Secretary of Health and Human Services to prescribe a formula for making such allotments.

Directs the Secretary to report on the activities, accomplishments, and expenditures of such systems.

Authorizes appropriations for FY 1986 and 1987.

Repeals title V (Mental Health Rights and Advocacy) of the Mental Health Systems Act.