(1) “Regular license” means a license issued to an adult foster care facility that is in compliance with this act and the rules promulgated under this act.

  (2) “Related” means any of the following relationships by marriage, blood, or adoption: spouse, child, parent, brother, sister, grandparent, grandchild, aunt, uncle, stepparent, stepbrother, stepsister, or cousin.

  (3) “Short-term operation” means an adult foster care facility that operates for a period of time less than 6 months within a calendar year.

  (4) “Special license” means a license issued for the duration of the operation of an adult foster care facility if the licensee is a short-term operation.

  (5) “Specialized program” means a program of services or treatment provided in an adult foster care facility licensed under this act that is designed to meet the unique programmatic needs of the residents of that home as set forth in the assessment plan for each resident and for which the facility receives special compensation.

  (6) “Special compensation” means payment to an adult foster care facility to ensure the provision of a specialized program in addition to the basic payment for adult foster care. Special compensation does not include payment received by the adult foster care facility directly from the Medicaid program for personal care services for a resident, or payment received under the supplemental security income program under title XVI of the social security act, 42 USC 1381 to 1383f.

  (7) “Supervision” means guidance of a resident in the activities of daily living, including 1 or more of the following:

  (a) Reminding a resident to maintain his or her medication schedule, as directed by the resident’s physician.

  (b) Reminding a resident of important activities to be carried out.

  (c) Assisting a resident in keeping appointments.

  (d) Being aware of a resident’s general whereabouts even though the resident may travel independently about the community.

  (8) “Temporary license” means a license issued to a facility that has not previously been licensed under this act or under former 1972 PA 287.