This description of the policy framework for Oregon's distance education program gives an overview of the progress to date, outlines five areas in which policy must be developed, and identifies a number of priorities among those areas. Progress is reported in the following areas: several initiatives that incorporate new telecommunications and computing technologies into teaching and learning off-campus; development of 237 distance courses for 1995-96; and, in the Portland area, direct broadcasting of courses into high-technology businesses. Extra attention is recommended for the following five major areas: (1) planning, quality, and program/courses (statewide inter-sector plan for distance education, local and regional needs assessments, resource sharing, quality assurance, articulation); (2) student services (access to and efficiency of services provided off campus); (3) faculty issues (incentives and rewards for participation, training opportunities, intellectual property considerations, copyrights); (4) tuition/fees and student enrollments (comparable fees for distance and traditional-delivery education, extra funding to support off-campus delivery, funding establishment of distance education infrastructure, registration); and (5) technical standards (consistent and compatible technologies, services, and procedures across the state). Priorities are identified from among these task areas. A list of contributors is appended. (MSE)