It is likely that the bill has been killed, but it seems Schwarzenegger and other law makers may try to appeal this decision in the Supreme Court. You can read up on it here.
One of the reason for the report was a research from Microsoft stating that half of the children use computers unsupervised in Europe. Due to this, the report insists on the PEGI as a useful system and remind the parents to follow it. In addition, a sort of "red button" is suggested in order for the parents to stop a game or the computer when improper content is observed.
The report also suggests schools to pay attention to the possible educational use of video games and to work with the parents to show them their advantages and disadvantages.
Sources: 1, 2, 3, 4.
The GDC Awards will be held on March 25, along with the with the Independent Games Festival. On the same occasion, the Harmonix founders Alex Rigopulos and Eran Egozy will receive the Pionner Award. Veteran videogame composer Tommy Tallarico will receive the Ambassador Award.
Last year the winner was Sid Meier. Previous recipients include Shigeru Miyamoto, Richard Garriott, Eugene Jarvis, Mark Cerny, Gunpei Yokoi, Yuji Naka and Will Wright.