Section of the Internal Revenue Code, relating to Coverdell education savings accounts, shall apply, except as otherwise provided. (

a) Section 530(

a) of the Internal Revenue Code is modified as follows:

(1) By substituting the phrase “under

Part 10 (commencing with

Section 17001) and this part” for the phrase “under this subtitle.”

(2) By substituting “Article 2 (commencing with

Section 23731)” for “section 511.” (

b) For taxable years beginning before January 1, 2002,

Section 530(b)(1) of the Internal Revenue Code, relating to Coverdell education savings account, is modified to additionally require that upon the date that the designated beneficiary becomes years of age, any balance to the credit of the beneficiary shall be distributed within days after the date the beneficiary becomes years of age to that beneficiary. (

c) Section 530(

d) of the Internal Revenue Code is modified as follows:

(1) By substituting the phrase “under

Part 10 (commencing with

Section 17001) in the manner as provided in

Section 72(

b) of the Internal Revenue Code, as modified by

Part 10” for the phrase “in the manner as provided in

Section 72(b)” in

Section 530(d)(1) of the Internal Revenue Code. (2) (

A) By substituting the phrase “tax imposed by

Part 10 (commencing with

Section 17001)” for the phrase “tax imposed by this chapter” in

Section 530(d)(4)(

A) of the Internal Revenue Code. (

B) By substituting the phrase “increased by 2 1 percent” for the phrase “increased by percent” in

Section 530(d)(4)(

A) of the Internal Revenue Code. (

C) By substituting the phrase “shall be included in the contributor’s gross income under

Part 10 (commencing with

Section 17001) or this part” for the phrase “shall be included in gross income” in

Section 530(d)(4)(

C) of the Internal Revenue Code. (

D) For taxable years beginning before January 1, 2005: (

i) By additionally providing that

Section 530(d)(4)(

A) of the Internal Revenue Code shall not apply if the payment or distribution is made on account of the attendance of the designated beneficiary at the United States Military Academy, the United States Naval Academy, the United States Air Force Academy, the United States Coast Guard Academy, or the United States Merchant Marine Academy, to the extent that the amount of the payment or distribution does not exceed the costs of advanced education (as defined by

Section 2005(e)(3) of Title of the United States Code, as in effect on November 11, 2003) attributable to that attendance. (ii) The amendments made to this

section by

Section of

Chapter of the Statutes of shall apply to taxable years beginning after December 31, 2002. (

d) For purposes of

Part 10 (commencing with

Section 17001) and this part, in the case of a custodial account treated as a trust by reason of

Section 530(

g) of the Internal Revenue Code, the custodian of that account shall be treated as the trustee thereof. (

e) A copy of the report, which is required to be filed with the Secretary of the Treasury under

Section 530(

h) of the Internal Revenue Code, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section. (

f) Section 109(d)(2) of Public Law 110-245, relating to application of amendments to deaths from injuries occurring on or after October 7, 2001, and before enactment, shall apply, except as otherwise provided.