On 21st March 2000, the Minister for Health Department of the Central Tibetan Administration had introduced two draft rules for Sowa-Rigpa Tibetan Doctors and preparation of medicines in the XIIth Assembly of Tibetan Parliament in Exile. Thereafter the Tibetan Parliament passed a unanimous resolution calling upon the need to set up a special committee to study the draft rules. Consequently a committee was set up jointly by the chairperson and the deputy chairperson.
After going through the draft rules and finding it most relevant and practical. The committee did not feel the need to get it passed in the Tibetan Parliament. Rather the committee felt it would be a better idea instead to frame a Legal Code or Act. of the Central Council of Tibetan Medicine to standardize and control the quality of Tibetan medical colleges, doctors, and pharmaceutical unit/company and subsequently presented a draft code before the Tibetan Parliament.
During the Xth Session of the XIIth Assembly of Tibetan Parliament in Exile, a resolution no: 12/10/108 was passed as directed by the Kashag (Cabinet) Order 12/10/2000. The resolution called for the setting up of the Central Council of Tibetan Medicine and framing of certain guidelines for collecting funds. So a committee consisting of members from the Health Department as well as Tibetan Medical & Astro. Institute (TMAI) for drafting the rules was set up on 6th November 2000. On 25th December 2000, the members met to begin preliminary discussions.
From 25th-28th December 2000, all the physicians in the TMAI, having the title of Junior Menrampa and above were assembled to a meeting to discuss the draft code of the Central Council of Tibetan Medicine, after which the first draft was presented to the Health Department. However the subject of raising fund was not discussed at the time.
For two days from 16th-17th, March 2001, all the physicians above the fourth rank belonging to the TMAI and its regional branches, along with independent physicians gathered for another meeting and had a informal discussion on each and every point of the draft code. Some suggestions were added and some points already in the draft were taken out. In the end, many changes were incorporated in the draft, which was presented to the Health Department along with suggestions towards raising fund.
On 21st July 2001, TMAI requested the Health Department to inform the Tibetan Parliament about the Code of the Central Council of Tibetan Medicine through the Kashag. Therefore the Health Department wrote in a letter dated 23rd July 2001 to the Kashag about seeking approval for this Code from the XIIIth Tibetan Parliament in Exile. The Kashag replied dated 2nd August 2001, that the matter should be raised during the next Kashag
On 16th January 2002, the matter was once again raised with the Health Department by the TMAI and so the issue was tabled before the XIIIth Tibetan Parliament members by the Kashag. The Tibetan Parliament passed a resolution calling for the setting up of a committee once again. The committee made removals, additions and other changes to the draft code.
During the Vth session of the XIIIth TPiE Assembly, the Minister for the Health Department read document no.13, a report on the code of the Central Council of Tibetan Medicine by the committee set up for the purpose. The Tibetan Parliament unanimously passed a resolution on the Legal Code of the Central Council of Tibetan Medicine and after getting it approved by His Holiness the Dalai Lama, it formally became a Legal Code.(Act.)