Narcotics Penalties and Enforcement Act of 1986 - Title I: Controlled Substances Penalties - Amends the Controlled Substances Act to modify the threshold quantity and kinds of controlled substances (adding cocaine freebase, controlled substance analogs, and fentanyl analogs) which trigger enhanced penalties. Imposes a mandatory minimum sentence of ten years' imprisonment (20 for subsequent offenses) for violations involving a specified large quantity of such substances. Increases the maximum sentence for such violations to 30 years' imprisonment and a fine of up to $2,000,000 (life imprisonment and a fine of up to $4,000,000 for subsequent violations). Provides for a fine of up to $5,000,000 ($10,000,000 for subsequent violations) for violations involving a person other than an individual (organization). Specifies lesser penalties for smaller quantities of the same substance.

Modifies the penalties for violations involving non-narcotic schedule I or II controlled substances, schedule III, IV, and V controlled substances, and certain other substances (including marihuana).

Increases the fines for certain Controlled Substances Act violations.

Imposes criminal penalties of imprisonment for up to one year and a fine of up to $5,000 (up to two years and $10,000 for subsequent violations) for possession of a controlled substance in a special maritime or territorial jurisdiction of the United States.

Provides increased criminal penalties (a mandatory minimum sentence of 20 years' imprisonment, maximum term of life) for certain Controlled Substances Act violations which result in death or a serious bodily injury.

Amends the Controlled Substances Import and Export Act to modify the threshold quantity and kinds of controlled substances which trigger revised enhanced penalties. (Modifies the quantities and kinds of substances to reflect those in the Controlled Substances Act.)

Increases the fines for certain Controlled Substances Import and Export Act violations.

Provides increased criminal penalties (a mandatory minimum sentence of 20 years' imprisonment, maximum term of life) for certain Controlled Substances Import and Export Act violations which result in death or serious bodily injury.

Title II: Controlled Substance Offenses Relating to Children and Schools; Precursor and Essential Chemical Review - Imposes enhanced penalties for the manufacture of a controlled substance in or near an elementary or secondary school. (Current law imposes such enhanced penalties only for the distribution of a controlled substance in or near such schools.)

Imposes increased penalties for employing persons under 18 years of age to manufacture or distribute a controlled substance.

Directs the Attorney General to conduct a study on the need for legislation, regulation, or alternative methods to control the diversion of legitimate precursor and essential chemicals to the illegal production of drugs. Requires the Attorney General to report his findings to the Congress within 90 days of enactment of this Act.

Title III: Controlled Substances Technical Amendments - Grants the Attorney General authority to enter into contracts with State and local law enforcement agencies to provide cooperative controlled substances enforcement.

Narcotics Penalties and Enforcement Act of 1986 - Title I: Controlled Substances Penalties - Amends the Controlled Substances Act to reduce the amount of drugs the manufacture, distribution, or possession of which is prohibited by such Act. Increases the criminal penalties for violations of such prohibitions. Provides for a fine of not more than $1,000,000 or imprisonment of not less than five and not more than 20 years or both or for a fine of not more than $3,000,000 for offenders other than individuals for offenses involving: (1) 125 grams or more of heroin; (2) one kilogram or more of cocaine; (3) 125 grams or more or 300 tablets or more of any other narcotic drug; (4) 20 grams or more of cocaine freebase; (5) ten grams or more of a controlled substance analogue; (6) 28 milliliters or more of phencyclidine (PCP); or (7) 500 milligrams or more of lysergic acid diethylamide (LSD). Makes repeat offenders subject to: (1) not less than ten nor more than 40 years imprisonment, a fine of not more than $2,000,000, or both; or (2) a fine of not more than $6,000,000 for offenders other than individuals. Prohibits suspension of sentence, probation, or parole for persons sentenced under such provision. Imposes a special parole term of at least four years in addition to the term of imprisonment for first offenders (at least eight years for repeat offenders).

Imposes different penalties for persons convicted of offenses involving: (1) 1,000 grams or more of heroin; (2) five kilograms or more of cocaine; (3) 2,500 grams or more or 6,000 tablets or more of any other narcotic drug; (4) 100 grams or more of cocaine freebase; (5) 100 grams or more of a controlled substance analogue; (6) 946 milliliters or more of PCP; or (7) one gram or more of LSD. Makes first offenders subject to: (1) imprisonment for not less than ten and not more than 30 years and a fine of not more than $2,000,000, or both; or (2) to a fine of not more than $5,000,000 for offenders other than individuals. Makes repeat offenders subject to: (1) imprisonment for not less than 20 years or for life and a fine of not more than $4,000,000, or both; or (2) a fine of not more than $10,000,000 for repeat offenders other than an individual. Imposes a special parole term of at least four years in addition to the term of imprisonment for first offenders (at least eight years for repeat offenders).

Increases the fine for offenses involving a controlled substance in schedule I or II (other than a narcotic drug, a controlled substance analogue, or PCP) or an amphetamine or amphetamine-like controlled substance in schedule III to $500,000 for individuals ($2,000,000 for offenders other than individuals). Increases the fine for offenses involving a controlled substance in schedule I or II that is a narcotic drug, a controlled substance analogue, or PCP to $1,000,000 ($5,000,000 for offenders other than individuals). Increases the fine for repeat offenders of the offense described in the first sentence of this paragraph to not more than $1,000,000 ($4,000,000 for offenders other than individuals). Increases the fine for repeat offenders of the offense described in the second sentence of this paragraph to not more than $2,000,000 ($10,000,000 for offenders other than individuals).

Increases the fine for offenses involving less than 50 kilograms of marihuana, ten kilograms of hashish, one kilogram of hashish oil, or controlled substances listed in schedule III (other than an amphetamine or amphetamine-like substance) to not more than $250,000 ($1,000,000 for offenders other than individuals). Increases the fine for repeat offenders to not more than $500,000 ($2,000,000 for offenders other than individuals).

Increases the fine for offenses involving controlled substances in schedule V to not more than $100,000 ($50,000 for offenders other than individuals). Increases the fine for repeat offenders to $250,000 ($500,000 for repeat offenders other than individuals).

Increases the fine for offenses involving piperidine to $250,000 ($1,000,000 for offenders other than individuals).

Increases the fine for certain offenses involving prescription drugs (referred to as prohibited acts B) to $250,000 ($500,000 for offenders other than individuals). Increases the fine for repeat offenders to $500,000 ($1,000,000 for offenders other than individuals).

Increases the fines for certain offenses involving the distribution or manufacture of drugs (referred to as prohibited acts C) to $250,000 ($1,000,000 for offenders other than individuals). Increases the fine for repeat offenders to $500,000 ($2,000,000 for offenders other than individuals).

Prohibits any person in the special maritime and territorial jurisdiction of the United States from knowingly or intentionally possessing a controlled substance unless such substance was obtained through a valid prescription or other authorized method. Provides for a fine of between $1,000 and $5,000 or imprisonment for one year, or both, for violations of this prohibition. Makes second offenders subject to imprisonment for at least 15 days but not more than two years and a fine of between $2,500 and $10,000, or both. Makes repeat offenders who have two previous convictions subject to imprisonment for at least 90 days but not more than three years and a fine of between $5,000 and $25,000. Prohibits suspension or deferral of the imposition or execution of a minimum sentence. Requires persons convicted under this paragraph to be taxed the reasonable costs of the investigation and prosecution of the offense.

Increases the fine for engaging in a continuing criminal enterprise to $2,000,000 ($5,000,000 for offenders other than individuals). Increases the fine for repeat offenders to $4,000,000 ($10,000,000 for offenders other than individuals).

Imposes a mandatory prison term of 20 years to life for persons convicted of certain drug offenses resulting in death or serious bodily injury.

Amends the Controlled Substances Import and Export Act to penalize persons who import or export specified amounts (qualifying such persons as major traffickers) of heroin, cocaine, other narcotic drugs, cocaine freebase, controlled substance analogue, PCP, or LSD by imprisonment for not less than ten nor more than 30 years, a fine of not more than $2,000,000, or both (a fine of not more than $5,000,000 for offenders other than individuals). Makes repeat offenders subject to imprisonment for 20 years to life, a fine of not more than $4,000,000, or both (a fine of not more than $10,000,000 for offenders other than individuals).

Makes persons who import or export specified amounts (qualifying such persons as serious traffickers) of heroin, cocaine, other narcotic drugs, cocaine freebase, controlled substance analogue, PCP, or LSD subject to imprisonment for not less than five and not more than 20 years, a fine of not more than $2,000,000, or both (a fine of $5,000,000 for offenders other than individuals). Makes repeat offenders subject to imprisonment for ten to 40 years, a fine of not more than $4,000,000, or both (a fine of not more than $10,000,000 for offenders other than individuals). Prohibits suspension of sentence, probation, or parole for persons convicted of such offenses. Imposes a special parole term of at least four years in addition to the term of imprisonment for first offenders (at least eight years for repeat offenders).

Increases the fine for importing or exporting controlled substances in schedule I or II to $500,000 ($2,000,000 for offenders other than individuals).

Increases the fine for importing or exporting specified quantities of marihuana, hashish, hashish oil, or controlled substances in schedule III, IV, or V to $250,000 ($1,000,000 for offenders other than individuals).

Increases the fine for intentional transshipment and in-transit shipment of controlled substances to $100,000 ($500,000 for offenders other than individuals).

Imposes a mandatory prison term of 20 years to life for persons convicted of certain drug offenses involving the exportation or importation of drugs resulting in death or serious bodily injury.

Title II: Controlled Substances Offenses Relating to Children and Schools; Precursor and Essential Chemical Review - Amends the Controlled Substances Act to impose enhanced penalties for the manufacture of a controlled substance in or near any school. (Current law imposes such enhanced penalties only for the distribution of a controlled substance in or near elementary or secondary schools.)

Imposes increased penalties for employing, using, or coercing persons under 18 years of age to manufacture or distribute controlled substances.

Directs the Attorney General to study and recommend methods to control the diversion of legitimate precursor and essential chemicals to the production of illegal drugs. Requires the Attorney General to report all findings to the Congress.

Title III: Controlled Substances Technical Amendments - Makes technical amendments to the Controlled Substances Act and to the Controlled Substances Import and Export Act.