Proposed Bill No. 1004 aims to enhance compliance with mental health parity laws by mandating the Insurance Department to conduct regular audits of health insurance companies. This requirement is intended to ensure adherence to the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008, as well as state mental health parity laws and regulations.

Additionally, the bill introduces a civil penalty of fifty thousand dollars for each incident of non-compliance by health insurance companies with these federal and state laws. This measure seeks to strengthen enforcement mechanisms and promote equitable access to mental health services.