I don't think they are allowed to "fail" you as it isn't a test. It is supposed to be an information seminar. Its like that seminar they force you to take before you get married.
Note the wording:
The "requirements" are the docs they ask you to bring, filling out the form, and the fee. Notice there is NOTHING about passing or failing.
Also...
Avail? As in "Use or take advantage of"? Sure doesn't sound like a test does it?
Yet some people love to abuse even perceived positions of authority. I would say if you run into one of these you can either complain up the line, or just go to a different location. For me personally I think I would complain till they hand it over.