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common sense doesn't seem to be that common any more.
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Boy do we agree on that one!
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if someone fails, he offers one retest on the same day, and states that anyone who fails twice needs more practice and can schedule a free retest.
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That is a very equitable, responsible, and if I dare say it, common-sense approach. As long as it is in line with state law, and it would seem to be from what you say, I would fully support that.
Florida (my state of residence) is similar in that it has no required proficiency standard; any standard is set by the instructor. And in Florida it is a a one-time class; renewals are just paperwork and a no photo.