I used to help my son's teacher when they had reading groups. This was in 1 grade (may be 3 grade is different), but they did not write anything during that time. They read aloud, talked, discussed the book, answered questions, but writing was done at home.
However, when the teacher did reading assessment, there was some brief writing involved. So, if your DD now is, for instance, at level 28, this means she passed the test at this level, right? Then she was able to write whatever she was supposed to write at this level, or the assessment differs at your school?.