I think it can be phrased better. But the core policy is perfectly fine. Often you can't spend class time arguing with every student about every absence. Instead, you tell them, "sorry, it's your responsibility to be here on time. I realize accidents happen, that's why you get a certain number of free tardies, so the accidents don't hurt you."

It's a perfectly fine way to run a classroom. You don't try and figure out whether the student is truly responsible for a small number of absences. Give them three free tardies. When shit happens, they're covered. But it saves your from having to argue with 16 year olds about every single absence and tardy. If a student goals over the limit, then you can actually put in the time to see if their excuses are valid.

Smooth operation of a school is not some minor thing to be dismissed. Every minute in class spent arguing about absence excuses is a minute taken from the instruction of every other student in the class.