California’s New Law on Stealing: Felonies, Priors, Diversion

California’s new law on stealing is Proposition 36, which voters approved in November 2024. It kept the $950 line between petty theft and grand theft, but it made two changes that matter to most people charged today: prosecutors can now combine the value of separate thefts to reach that $950 felony threshold, and a third theft conviction can be charged as a felony no matter how small the amount taken.

The $950 Line Still Holds

Taking property worth $950 or less is petty theft, a misdemeanor under Penal Code 490.2.¹ Value is measured by the property’s fair market value at the time of the theft. Cross $950 and the charge becomes grand theft under Penal Code 487, which is a wobbler the prosecutor can file as either a misdemeanor or a felony.²

Some items are grand theft regardless of value: any automobile, any firearm, and property taken directly off a person. The petty theft statute explicitly excludes firearms.¹ Employee theft has its own rule: if a worker takes $950 or more from an employer over any 12 consecutive months, that adds up to grand theft even when no single incident crossed the line.² Farm crops and aquaculture products trigger grand theft at just $250.

Shoplifting is treated as its own offense. Under Penal Code 459.5, entering a store during business hours intending to steal $950 or less is shoplifting, a misdemeanor for most people, and the same act cannot also be charged as burglary or theft.³

Felonies for Repeat Theft Offenders

The biggest change under Proposition 36 is Penal Code 666.1. If you have two or more prior convictions for theft-related crimes and you pick up a new petty theft or shoplifting charge, that new charge is a wobbler carrying up to a year in county jail or a state prison term. A second conviction under PC 666.1 can also be punished with county jail or state prison.⁴

The list of qualifying priors is wide: petty theft, grand theft, shoplifting, burglary, carjacking, robbery, vehicle theft, receiving stolen property, identity theft, and elder theft. Convictions that predate Proposition 36 still count.⁴

Combining Thefts Across Victims and Counties

Before Proposition 36, stealing $400 from three different stores in three different counties meant three separate misdemeanors. Now Penal Code 487(e) lets prosecutors add those amounts together and charge grand theft once the total passes $950, even when the victims and counties differ.²

The thefts have to share a common intention and plan. Courts weigh whether the same defendants were involved, whether the acts were similar in nature, and whether they happened within a 90-day window.²

Serious Priors Change Everything

A person with a prior serious or violent felony conviction, or someone who must register as a sex offender, can be sentenced under the felony framework even for a theft under $950.¹ Proposition 36 wrote this exception more consistently across the theft, shoplifting, and receiving-stolen-property statutes than the older Penal Code 666 did.⁵ The same exception applies to shoplifting under PC 459.5.³

Organized Retail Theft and Group Sentencing

Penal Code 490.4 covers coordinated stealing. You can be charged if you act with at least one other person to steal merchandise from a store or online marketplace intending to sell, return, or exchange it. When the combined value of merchandise taken in two or more separate incidents within 12 months tops $950, the charge is a wobbler.⁶

Proposition 36 also lets a court add up to three years to a felony sentence for theft or property damage when three or more people committed the crime together.⁷

What Each Charge Actually Carries

Misdemeanor petty theft: up to six months in county jail, a fine up to $1,000, or both.⁸
Misdemeanor grand theft or organized retail theft: up to one year in county jail.
Felony grand theft (non-firearm): 16 months, two years, or three years in county jail under realignment.⁹
Felony grand theft of a firearm: 16 months, two years, or three years in state prison, not county jail.⁹
Repeat-offender petty theft under PC 666.1: up to one year in county jail or a state prison term, with state prison possible on a second conviction under the section.⁴

Restitution and Civil Demands

Jail and fines are not the only money at stake. Penal Code 1202.4 requires the court to order full restitution to the victim for economic loss, and that order is enforceable as a civil judgment. Wages can be garnished and liens placed on property to collect it. Recoverable losses can include related financial harm and even psychological harm caused by the crime.¹⁰

Stores have a separate civil claim. Under Penal Code 490.5, a merchant can sue an adult shoplifter for between $50 and $500, plus the retail value of any merchandise not returned in sellable condition. Many retailers send a civil demand letter before filing suit. When a minor shoplifts, the custodial parent or guardian is jointly liable within the same $50 to $500 range, capped at $500 per incident.¹¹ Paying the civil demand does not resolve any criminal charges. They are separate tracks.

Diversion and Clearing a Theft Record

A misdemeanor theft charge does not have to follow you. Penal Code 1001.95 lets a judge grant diversion for any misdemeanor, including theft, even over the prosecutor’s objection. The case is continued for up to 24 months while you complete conditions the judge sets, often restitution, community service, or counseling. Finish the conditions and the case is dismissed. Fail to comply and the criminal case resumes.¹²

Diversion is not available for offenses requiring sex offender registration, domestic violence, or stalking. Most standalone theft misdemeanors qualify, though the judge can deny it.¹²

If you were convicted rather than diverted, Penal Code 1203.4 lets you petition for dismissal after finishing probation. You must have completed every probation condition and cannot be currently serving a sentence, on probation elsewhere, or facing new charges. An unpaid restitution balance does not block the petition or the relief.¹³

A PC 1203.4 dismissal releases you from most consequences of the conviction, but not all. You still cannot own or possess a firearm if the conviction made that illegal, you must disclose the conviction on applications for public office or state licensure, and any active protective orders stay in place.¹³ For most employment questions, a dismissed conviction is considerably less damaging than an active one.

1
California Legislative Information. California Penal Code 490.2
2
California Legislative Information. California Penal Code 487
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California Legislative Information. California Penal Code 459.5
4
California Secretary of State. Proposition 36 Text of Proposed Laws
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California Legislative Information. California Penal Code 666
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California Legislative Information. California Penal Code 490.4
7
Legislative Analyst’s Office. Proposition 36 Analysis
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California Legislative Information. California Penal Code 490
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California Legislative Information. California Penal Code 489
10
California Legislative Information. California Penal Code 1202.4
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California Legislative Information. California Penal Code 490.5
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California Legislative Information. California Penal Code 1001.95
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California Legislative Information. California Penal Code 1203.4