I'm probably showing my age by saying this ("I'm 37! What? I'm 37. I'm not old") but this appears to be a totally appropriate response by the school authorities. In fact, I would advocate smashing her phone into a thousand pieces with a sledgehammer, right in front of her.
It's unfortunate that the cops have to get involved but remember that these days, teachers are hamstrung by lawsuits, PTAs and school boards.
I would recommend that everyone read the *entire* report before jumping to conclusions. This student has had discipline problems in the past (see last sentence in first para), and she repeatedly lied to the teacher, the principal and the police officer about the phone.
I also don't understand how anyone can claim that using a cellphone (this includes texting) during lessons is not disruptive. I'm sure parents would be aghast if their precious little snowflake pulled out a PSP or a Gameboy in class. And yet, using a cellphone in class is OK?