The Distance Learning Policy Laboratory of the Southern Regional Education Board (SREB) and many states and regional organizations are coming to a consensus on the principles and goals that should shape distance learning policies. In the case of quality assurance, the SREB believes there are four guiding principles that states should follow. States should take advantage of state, regional, and national networks for sharing high quality offerings, and reciprocity should be maximized. States should demonstrate a commitment to innovation and a desire to move the best of these practices into mainstream activities. State quality assurance policies should focus on the needs of the student, and state policies should be shaped with the understanding that "distance" is not a defining characteristic of learning processes; rather, it is one among many factors to take into account in designing effective programs. Within these guiding principles, the quality assurance subcommittee has prepared seven recommendations for consideration by the Distance Learning Policy Leadership Group and the SREB. These involve: (1) review of current oversight policies; (2) adoption of "best practices"; (3) development of more effective mechanisms to learn student views concerning the quality of distance learning offerings; (4) extending and formalizing the "free trade zone" concept in the electronic campus; (5) working toward consistent, coordinated, unbiased, and nonduplicative reviews; (6) accelerating work to include outcome measures in accountability mechanisms; and (7) establishing common definitions and state data reporting mechanisms. Two appendixes contain a quality practices survey and a list of respondents to this survey. (SLD)