I just got back from picking up my son's cell phone from school. Seems he was using it yesterday during class.
This school's policy is actually quite reasonable, if a little liberal. They allow cell phones on campus (after Columbine and 9/11 most schools do) but prohibit their use during the school day (presumably they would make exceptions during exceptional times).
If a teacher/administrator sees it out (my son's was vibrating inside his notes binder), it is confiscated and given to the front office. A parent can pick it up the next day. Second offense calls for it to be held for 30 days, third offense is 60 days, fourth is 90 days and fifth offense is until the end of school.
My punishment is harsher, no cell phone for undetermined amount of time (probably a couple weeks for this incident), then no cell phone at school for the rest of the year. He's also grounded for poor grades, so the actual punishment will be harsher.
The real key here is on preventing a reoccurrence of the "crime". The goal is to teach him that he shouldn't be texting while in class.