Just saw this & it requires a mini-rant:
This teacher deserves to be punished/get some kind of repercussion (say unpaid suspension) considering it's not like the kid was preaching on the playground or trying to convert people. If they didn't, I'd be making sure the school knew I was considering a 1st Amendment lawsuit if it was my child. I would also seek to have my child transferred out of that class.
I grew up in a Baptist home & even went to Christian school from 1st-3rd grade but these days, I don't follow any organized religion due to corruption concerns far beyond pastors living large while their congregants live in squalor (though I do believe God exists). How dare anyone tell someone they can't read a religious text in their off time? Should this child read a book on how to make bombs instead? Maybe she should be reading that infamous "How to be a Hit Man" book; I'm sure that would make this clueless, intolerant teacher happy & no one would try banning those.
Seriously, though I side w/the family since not wanting to be converted doesn't = suppression of others' rights to quietly pray or read religious texts.