It actually was/is written policy, but I most airports didn't enforce it in that way. We actually didn't see the purpose in making people go back out and do it again so we could screen them twice.
Don't wanna make it seem like I'm picking on ya, Cee!
Just wanted to add ... I flew out of my old airport last year and they actually followed the SOP on this! If your items were small, but weren't in a baggie, you either had to surrender them, or go back out to the landside gift shop, buy a baggie for 50 cents, and go back through the line.
And no, my former co-workers didn't cut me any slack!