California’s 2025 Retail‑Theft Crackdown: What Defendants Need to Know

Lawmakers and voters responded to a surge in smash‑and‑grab robberies and organized shoplifting by enacting Proposition 36 and several related bills in late 2024. These measures, most of which take effect in 2025, give prosecutors new crimes, sentence enhancements and arrest powers designed to deter retail theft and other property crimes. As criminal defense attorneys and former prosecutors, Radford & Rome, LLP understand the intricacies of these new laws and how to protect clients accused of theft.

1. Felony Charges for Repeat Misdemeanor Theft (Penal Code § 666.1)

Proposition 36 creates a new felony, Penal Code § 666.1, aimed at habitual thieves. A person may now be charged with a felony even for petty theft or shoplifting if they have two or more prior convictions for certain theft‑related offenses. Qualifying priors include petty or grand theft, theft from an elder, vehicle theft, burglary, carjacking, robbery, receiving stolen property, shoplifting and identity theft. Prior convictions from other states may count if they would be punishable by imprisonment in California.

• Sentences: The first conviction under § 666.1 carries up to one year in county jail or 16 months, two or three years in custody. Subsequent convictions must be served in state prison with the same potential term.
  
• Prosecutorial discretion and diversion: Prosecutors may refer an eligible defendant to theft‑diversion or deferred entry of judgment programs. The defendant’s admission into these programs is at the prosecutor’s discretion—not the court’s.
  
• Judicial review before release: A judge must review any pretrial release for a § 666.1 charge to assess public‑safety risk and likelihood of return to court. This can delay release and underscores the need for prompt legal representation.
  

2. New Property‑Crime Offenses

Forcible Entry into a Vehicle (Penal Code § 465)

Senate Bill 905 adds Penal Code § 465, which makes it a crime to forcibly enter a vehicle—using tools like slim jims, jiggler keys, lock picks, signal extenders or by breaking a window—with intent to commit theft or any felony. The offense is a wobbler punishable by up to one year in county jail or 16 months, two or three years in custody. A defendant cannot be convicted of both § 465 and burglary of a vehicle (§ 459) for the same act.

Possession of Property Acquired from Vehicle Theft (Penal Code § 496.5)

The same bill creates Penal Code § 496.5, criminalizing possession of property taken from a vehicle by theft if:

1. The property is held with intent to sell or exchange for value (including acting in concert), rather than for personal use; and
   
2. The value exceeds $950, which may be aggregated across property possessed within the past two years or by co‑conspirators.
   

The court may consider evidence of prior sales of stolen property and whether the goods are of a type or quantity inconsistent with personal use to determine intent. This offense is a wobbler, carrying the same potential punishment as § 465.

Deprivation of a Retail Business Opportunity (Penal Code § 496.6)

Assembly Bill 2943 adds Penal Code § 496.6, targeting people who possess goods stolen from a retail business with intent to sell, exchange or return them. The statute requires three elements:

1. The defendant possesses merchandise obtained via shoplifting, theft or burglary from a retail business;
   
2. The possession is not for personal use but for resale or exchange, including acting in concert;
   
3. The value exceeds $950, which may be aggregated across property held within two years or by co‑participants.
   

Like § 496.5, courts can infer resale intent from evidence such as prior sales or the quantity/type of goods. The offense is a wobbler punishable by up to one year in county jail or 16 months, two or three years in custody.

3. Expansive Sentence Enhancements

Excessive Taking or Damage (Penal Code § 12022.6)

Proposition 36 enacts Penal Code § 12022.6, which adds extra prison time when the loss or damage from a theft‑related felony exceeds certain thresholds:

• +1 year when the loss exceeds $50,000;
  
• +2 years when it exceeds $200,000;
  
• +3 years for losses over $1 million;
  
• +4 years for losses over $3 million, plus an extra year for each additional $3 million.
  

The enhancement can aggregate losses across multiple offenses committed under a common scheme or plan and may be imposed alongside other enhancements.

Acting in Concert (Penal Code § 12022.65)

Another new enhancement, Penal Code § 12022.65, imposes one, two or three extra years when a person acts with two or more others to take or damage property during a felony. Like § 12022.6, the time is served where the base sentence is served and requires the underlying facts to be pleaded and proven.

Sale of Stolen Property Enhancement (Penal Code § 12022.10)

Senate Bill 1416 enacts Penal Code § 12022.10, adding time when a defendant sells, exchanges or returns stolen retail merchandise. The enhancement adds:

• +1 year if the value exceeds $50,000;
  
• +2 years if it exceeds $200,000;
  
• +3 years if it exceeds $1 million;
  
• +4 years if it exceeds $3 million, with +1 year for each additional $3 million.
  

The sentence applies whether or not the defendant committed the theft and can aggregate losses across victims if part of a common plan. This enhancement sunsets on January 1 2030, but the broader § 12022.6 does not.

4. Aggravating Factor for Arson in Retail Thefts

Under Senate Bill 1242, arson committed inside a retail establishment to facilitate organized theft is an aggravating factor under Penal Code § 452. Judges may impose a high‑end (aggravated) term if the jury finds beyond a reasonable doubt that the fire was set to aid retail theft.

5. Permanent Organized‑Retail‑Theft Statute (Penal Code § 490.4)

Prior law made organized retail theft a temporary crime set to expire in 2026. Senate Bill 982 and Assembly Bill 1802 repealed the sunset provision, making § 490.4 permanent. Organized retail theft occurs when two or more people work together to steal merchandise valued at over $950 with intent to sell or return it. Convictions carry jail or prison time, restitution and now may be paired with the enhancements above.

6. Expanded Arrest Powers and Probation Options

Warrantless Arrests for Shoplifting (Penal Code § 836(f))

Assembly Bill 2943 amends Penal Code § 836 to permit police to arrest for shoplifting (§ 459.5) without a warrant when officers did not witness the crime. Such arrests are allowed if:

• The officer has probable cause and makes the arrest without undue delay;
  
• There is a sworn witness statement, video evidence, the suspect has numerous goods with security devices attached, or the suspect confesses.
  

This change enables officers to act quickly on evidence collected by store employees or security cameras.

Two‑Year Probation and Rehabilitation Programs (Penal Code § 1203g)

The same bill adds Penal Code § 1203g, allowing courts to impose up to two years of probation for shoplifting (§ 459.5) and petty theft (§ 488 or § 490.2). If probation exceeds the usual one‑year maximum, judges must consider referring the defendant to collaborative courts or rehabilitation programs, particularly programs for offenders under 25 that use trauma‑informed, restorative approaches. Completion of the program results in discharge of probation.

7. Retail Crime Restraining Orders (Penal Code § 490.8)

Assembly Bill 3209 introduces Penal Code § 490.8, allowing judges to issue retail crime restraining orders at sentencing. These orders can prohibit a defendant from entering the retail establishment and, if part of a chain, other locations within a defined area for up to two years. They may be issued following convictions for shoplifting, theft from a retail business, organized retail theft, vandalism of a retail business or assault/battery of retail employees.

Courts must consider whether barring entry would cause undue hardship, such as denying the defendant access to the only local source of food or medicine. Prosecutors, city attorneys or retail businesses may also petition for restraining orders against individuals who have been arrested or cited twice for retail offenses. Violating a restraining order is a misdemeanor. Also, generally, people subject to a restraining order will be limited in their ability to own or possess firearms.

8. Aggregating Property Value and Jurisdiction (Penal Code §§ 487, 490.3 & 786.5)

Proposition 36 and related legislation broaden prosecutors’ ability to aggregate the value of multiple thefts to reach felony thresholds and to consolidate cases in a single county. Although not discussed in detail above, Penal Code §§ 487 and 490.3 permit prosecutors to combine losses from separate incidents even when there is no common plan so long as the crimes are part of a single course of conduct. Assembly Bill 1779 (Penal Code § 786.5) clarifies that a theft case may be filed in any county where an act occurred, property was taken or recovered, or where the defendant aided the crime.

9. How Radford & Rome, LLP Can Help

The 2025 changes to these laws give prosecutors powerful leverage and can drastically increase the penalties for charges that were previously treated less seriously, but they also create complexities that a knowledgeable defense attorney can exploit. At Radford & Rome, LLP, we:

• Analyze the charging documents to ensure the alleged conduct actually meets the new statutory definitions. For example, we scrutinize whether the prosecution has properly aggregated property values, proved a common plan, or shown the required intent under §§ 496.5 and 496.6.
  
• Challenge enhancements and priors. Enhancements like §§ 12022.6, 12022.65 and 12022.10 must be pleaded and proven beyond a reasonable doubt. We fight improper stacking of enhancements and ensure prior convictions are valid and admissible.
  
• Contest warrantless arrests and evidentiary issues. We examine whether officers had probable cause and complied with the requirements of § 836(f) when arresting without a warrant. We also challenge the admissibility of surveillance footage, witness statements and confessions.
  
• Negotiate rehabilitation‑focused resolutions. For eligible clients, we seek entry into theft‑diversion programs or probation with rehabilitation under § 1203g. These alternatives can avoid a felony conviction and reduce future consequences.
  
• Advocate against restraining orders and collateral consequences. We argue that retail crime restraining orders are unnecessary when they create undue hardship or when evidence of ongoing risk is insufficient.
  

The retail‑crime crackdown increases potential penalties but also provides new avenues for negotiation and mitigation. If you are facing charges for shoplifting, organized retail theft or any related offense under the 2025 laws, call Radford & Rome, LLP. Our extensive experience on both sides of the courtroom allows us to craft strategic defenses and protect your rights.