Disqualified for an intentional program violation or for failure to comply with a food stamp work registration requirement or a food stamp work requirement as provided in section 385.3 of this Title.

(i) Income, resources and deductible expenses. The income and resources of the disqualified individuals continue to be counted in the determination of the household's food stamp eligibility and benefit levels. However, the entire household's allowable earned income, utility standard, medical expenses, dependent care and excess shelter deductions continue to apply to the remaining household members.

(ii) Eligibility and benefit levels. Disqualified members are not to be included when determining the household's size for the purposes of:

(a) assigning a benefit level to the household;

(b) comparing the household's monthly income with the income eligibility standards; or

(c) comparing the household's resources with the resource eligibility standards. The household's coupon allotment must not increase as a result of the disqualification of one or more household members.