I am afraid I do not know much history of how this came to be but I can certainly support the intent of the order (if only California wasn't in such a debt crisis some of these might have had more of a change for increased funding)..but it certainly looks good on official executive order paper...
WHEREAS ICT Digital Literacy is defined as using digital technology, communications tools and/or networks to access, manage, integrate, evaluate, create and communicate information in order to function in a knowledge-based economy and society; and
WHEREAS Information and Communications Technologies (ICT) Digital Literacy is a defining component of California's competitiveness for a knowledge-based economy and is growing in importance to attract capital investment that will generate higher quality jobs; and
WHEREAS a California ICT Digital Literacy Policy would support a framework and continuum of digital literacy skills, benchmarking, and metrics consistent with globally accepted standards, and would ensure accountability for assessing progress and success; and
WHEREAS ICT Digital Literacy skills are vital to California's ability to compete successfully in a global information and knowledge economy; and
Read more at http://gov.ca.gov/executive-order/12393/