The article is very unclear and, as others have pointed out, seems to be two different articles welded together.
Persuading children to change their "gender" is one thing, persuading them to change their "gender identity" quite another. The first would cover Mermaids, the second, presumably, Transgender Trend and its supporters.
I would be very interested to know where this story has come from. Has the journalist simply misunderstood what is being proposed? Or is he being briefed - as the article suggests - by government sources in the know?
I agree that it is going to be very very difficult to draft this legislation in a way that makes any sense.