Therapeutic Fraud Prevention Act of 2016

Summary: Therapeutic Fraud Prevention Act of 2016 This bill prohibits sexual orientation or gender identity conversion therapy from being provided in exchange for monetary compensation. It bars advertisements for such therapy that claim to: (1) change an individual's sexual orientation or gender identity, (2) eliminate or reduce sexual or romantic attractions or feelings toward individuals of the same gender, or (3) be harmless or without risk. These prohibitions are inapplicable to practices or treatments that do not seek to change sexual orientation or gender identity if they provide: (1) assistance to an individual undergoing a gender transition; or (2) acceptance, support, and understanding of clients or facilitation of clients' coping, social support, and identity exploration and development, including sexual orientation-neutral interventions to prevent or address unlawful conduct or unsafe sexual practices.  The Federal Trade Commission and states are provided authority to enforce against violations. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Therapeutic Fraud Prevention Act of 
2016''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) being lesbian, gay, bisexual, transgender, or gender 
        nonconforming is not a disorder, disease, illness, deficiency, 
        or shortcoming;
            (2) the national community of professionals in education, 
        social work, health, mental health, and counseling has 
        determined that there is no scientifically valid evidence that 
        supports the practice of attempting to prevent a person from 
        being lesbian, gay, bisexual, transgender, or gender 
        nonconforming;
            (3) such professionals have determined that there is no 
        evidence that conversion therapy is effective or that an 
        individual's sexual orientation or gender identity can be 
        changed by conversion therapy;
            (4) such professionals have also determined that the 
        potential risks of conversion therapy are not only that it is 
        ineffective, but also that it is substantially dangerous to an 
        individual's mental and physical health, and has been shown to 
        contribute to depression, self-harm, low self-esteem, family 
        rejection, and suicide; and
            (5) it is in the interest of the Nation to make sure that 
        lesbian, gay, bisexual, transgender, and gender nonconforming 
        people and their families are not defrauded by persons seeking 
        to profit by offering this harmful and wholly ineffective 
        therapy.

SEC. 3. UNFAIR OR DECEPTIVE ACTS AND PRACTICES RELATED TO CONVERSION 
              THERAPY.

    (a) Unlawful Conduct.--It shall be unlawful for any person--
            (1) to provide conversion therapy to any individual if such 
        person receives monetary compensation in exchange for such 
        services; or
            (2) to advertise for the provision of conversion therapy 
        and claim in such advertising--
                    (A) to change another individual's sexual 
                orientation or gender identity;
                    (B) to eliminate or reduce sexual or romantic 
                attractions or feelings toward individuals of the same 
                gender; or
                    (C) that such efforts are harmless or without risk 
                to individuals receiving such therapy.
    (b) Enforcement by Federal Trade Commission.--
            (1) Violation of rule.--A violation of subsection (a) shall 
        be treated as a violation of a rule defining an unfair or 
        deceptive act or practice prescribed under section 18(a)(1)(B) 
        of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
            (2) Powers of commission.--
                    (A) In general.--The Commission shall enforce this 
                section in the same manner, by the same means, and with 
                the same jurisdiction, powers, and duties as though all 
                applicable terms and provisions of the Federal Trade 
                Commission Act (15 U.S.C. 41 et seq.) were incorporated 
                into and made a part of this Act.
                    (B) Privileges and immunities.--Any person who 
                violates this subsection (a) shall be subject to the 
                penalties and entitled to the privileges and immunities 
                provided in the Federal Trade Commission Act (15 U.S.C. 
                41 et seq.).
            (3) Regulations.--The Commission may promulgate, in 
        accordance with section 553 of title 5, United States Code, 
        such regulations as the Commission considers appropriate to 
        carry out this section.
    (c) Enforcement by States.--
            (1) In general.--In any case in which the attorney general 
        of a State has reason to believe that an interest of the 
        residents of the State has been or is threatened or adversely 
        affected by the engagement of any person subject to subsection 
        (a) in a practice that violates such subsection, the attorney 
        general of the State may, as parens patriae, bring a civil 
        action on behalf of the residents of the State in an 
        appropriate district court of the United States to obtain 
        appropriate relief.
            (2) Rights of federal trade commission.--
                    (A) Notice to federal trade commission.--
                            (i) In general.--Except as provided in 
                        clause (iii), the attorney general of a State 
                        shall notify the Federal Trade Commission in 
                        writing that the attorney general intends to 
                        bring a civil action under paragraph (1) before 
                        initiating the civil action.
                            (ii) Contents.--The notification required 
                        by clause (i) with respect to a civil action 
                        shall include a copy of the complaint to be 
                        filed to initiate the civil action.
                            (iii) Exception.--If it is not feasible for 
                        the attorney general of a State to provide the 
                        notification required by clause (i) before 
                        initiating a civil action under paragraph (1), 
                        the attorney general shall notify the 
                        Commission immediately upon instituting the 
                        civil action.
                    (B) Intervention by federal trade commission.--The 
                Commission may--
                            (i) intervene in any civil action brought 
                        by the attorney general of a State under 
                        paragraph (1); and
                            (ii) upon intervening--
                                    (I) be heard on all matters arising 
                                in the civil action; and
                                    (II) file petitions for appeal of a 
                                decision in the civil action.
            (3) Investigatory powers.--Nothing in this subsection may 
        be construed to prevent the attorney general of a State from 
        exercising the powers conferred on the attorney general by the 
        laws of the State to conduct investigations, to administer 
        oaths or affirmations, or to compel the attendance of witnesses 
        or the production of documentary or other evidence.
            (4) Preemptive action by federal trade commission.--If the 
        Federal Trade Commission institutes a civil action or an 
        administrative action with respect to a violation of subsection 
        (a), the attorney general of a State may not, during the 
        pendency of such action, bring a civil action under paragraph 
        (1) against any defendant named in the complaint of the 
        Commission for the violation with respect to which the 
        Commission instituted such action.
            (5) Venue; service of process.--
                    (A) Venue.--Any action brought under paragraph (1) 
                may be brought in--
                            (i) the district court of the United States 
                        that meets applicable requirements relating to 
                        venue under section 1391 of title 28, United 
                        States Code; or
                            (ii) another court of competent 
                        jurisdiction.
                    (B) Service of process.--In an action brought under 
                paragraph (1), process may be served in any district in 
                which the defendant--
                            (i) is an inhabitant;
                            (ii) may be found;
                            (iii) transacts business; or
                            (iv) wherever venue is proper under section 
                        1391 of title 28, United States Code.
            (6) Actions by other state officials.--
                    (A) In general.--In addition to civil actions 
                brought by attorneys general under paragraph (1), any 
                other officer of a State who is authorized by the State 
                to do so may bring a civil action under paragraph (1), 
                subject to the same requirements and limitations that 
                apply under this subsection to civil actions brought by 
                attorneys general.
                    (B) Savings provision.--Nothing in this subsection 
                may be construed to prohibit an authorized official of 
                a State from initiating or continuing any proceeding in 
                a court of the State for a violation of any civil or 
                criminal law of the State.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Conversion therapy.--The term ``conversion therapy''--
                    (A) means any practices or treatments by any person 
                that seek to change another individual's sexual 
                orientation or gender identity, including efforts to 
                change behaviors or gender expressions, or to eliminate 
                or reduce sexual or romantic attractions or feelings 
                toward individuals of the same gender, if such person 
                receives monetary compensation in exchange for such 
                practices or treatments; and
                    (B) does not include practices or treatments that--
                            (i) provide assistance to an individual 
                        undergoing a gender transition; or
                            (ii) provide acceptance, support, and 
                        understanding of a client or facilitation of a 
                        client's coping, social support, and identity 
                        exploration and development, including sexual 
                        orientation-neutral interventions to prevent or 
                        address unlawful conduct or unsafe sexual 
                        practices,
                if such practices or treatments do not seek to change 
                sexual orientation or gender identity.
            (2) Gender identity.--The term ``gender identity'' means 
        the gender-related identity, appearance, mannerisms, or other 
        gender-related characteristics of an individual, regardless of 
        the individual's designated sex at birth.
            (3) Sexual orientation.--The term ``sexual orientation'' 
        means homosexuality, heterosexuality, or bisexuality.

SEC. 5. SEVERABILITY.

    If any provision of this Act, or the application of such provision 
to any person or circumstance, is held to be unconstitutional, the 
remainder of this Act, and its application to any person or 
circumstance shall not be affected thereby.