(a) The executive commissioner may adopt and publish and the department may enforce minimum standards relating to the grading of an institution in order to recognize those institutions that provide more than the minimum level of services and personnel as established by the executive commissioner.
(b) An institution that has a superior grade shall prominently display the grade for public view.

(c) As an incentive to attain the superior grade, an institution may advertise its grade, except that it may not advertise a superior grade that has been canceled.
(d) The department may not award a superior grade to an institution that, during the year preceding the grading inspection, violated state or federal law, rules, or regulations relating to:
(1) the health, safety, or welfare of its residents;
(2) resident funds;
(3) the confidentiality of a resident’s records;
(4) the financial practices of the institution; or
(5) the control of medication in the institution.
(e) The department shall cancel an institution’s superior grade if the institution:
(1) does not meet the criteria established for a superior grade; or
(2) violates a state or federal law, rule, or regulation described by Subsection (d).