California Prop 36: How the 2024 Election Results Impact Retail Crime and Security

Earlier this month, state and federal elections were held in the United States. How will the recent election results impact loss prevention (LP) and asset protection (AP) professionals (and retailers and restaurants in general)? While we don’t know yet what will change at the federal level, one major takeaway from this election is voters desiring a move towards law-and-order policies. 

Nowhere was this clearer than California. California has made headlines in the past several years as cities such as San Francisco and Los Angeles have become hotbeds for Organized Retail Crime (ORC) crime and shoplifting, leading to huge shutdowns of retail locations (particularly in the Bay Area). California’s problem has often been attributed to soft-on-crime officials and laws such as Prop 47, which treated thefts under $950 as misdemeanors, even for repeat offenders. 

On November 5, California voters overwhelmingly passed Prop 36, a critical measure for retailers concerned about rising crime rates and security in that state, by a large margin. In this blog post, we’ll take a look at Prop 36 and what it means for retailers and LP/AP professionals.  

What is Proposition 36? 

Proposition 36, also known as The Homelessness, Drug Addiction, and Theft Reduction Act, is a legislative response to worsening organized retail crime (ORC), smash and grabs, and repeated property theft in California cities and their link to increased homelessness and drug addiction in the state.  

Proposition 36 is in some ways a reaction to the consequences of Proposition 47, a ballot measure passed in 2014 which recategorized shoplifting, grand theft, and receiving stolen property offenses in California where the value of the stolen property was $950 or below as misdemeanors. Some have argued that this led to offenders who repeatedly steal up to $950 in value facing virtually no legal consequences. According to Prop 36, “The result (of Prop 47) has been an explosion in retail and cargo theft causing stores throughout California to close to protect employees and customers from criminal activity that disrupts the efficient delivery of products directly to consumers and creates billions of dollars in economic losses to our local communities and state.”  

Proposition 36 has been met with strong opinions on both sides. Opponents, including some criminal justice reform advocates, caution that stricter penalties might lead to over-incarceration and strain the justice system. Supporters, including many retailers and law enforcement groups, argue that it provides essential tools to combat the surge in ORC and smash-and-grabs and can help protect retailers from significant financial losses.  

Here are the measure’s main points as it relates to retail theft: 

• Restoring Felony Charges for Repeat Offenders: 
  Under Proposition 47, thefts under $950 were treated as misdemeanors, even for repeat offenders. Proposition 36 reinstates the option to charge individuals with a felony if they have two prior theft convictions, regardless of the stolen property’s value. 

• Targeting Smash-and-Grab Thefts: 
  Judges can now impose harsher penalties for thefts involving groups (e.g., smash-and-grabs and flash mob thefts) or incidents causing significant damage or losses exceeding $50,000. This aims to curb the rise in coordinated retail thefts. 

• Adding Up Multiple Thefts: 
  The law allows stolen property values from multiple incidents to be combined. This prevents offenders from exploiting the $950 misdemeanor limit by committing several smaller thefts to avoid felony charges. 

• Judicial Flexibility: 
  Judges retain discretion in sentencing. Diversion programs are available for some offenders but repeat offenders could face jail time or state prison for four or more convictions, ensuring penalties match the crime's severity. 

• Addressing Theft Linked to Drug Addiction: 
  The changes aim to break the cycle of theft often associated with drug use. By imposing stricter legal consequences, Proposition 36 seeks to deter habitual theft driven by the need to fund drug habits. 

Closing Legislation Gaps in Fighting ORC 

Organized retail crime (ORC) has become a growing concern for retailers across the United States, and California, home to several high-density urban areas, has faced some of the most significant challenges due to coordinated theft rings and lenient legal thresholds for property crimes. For instance, San Francisco has lost nearly half of all retail stores in its downtown shopping district since 2019. While the decline of retail is multi-variable and includes the rise of remote work, high levels of theft and shrink and worsening safety conditions are considered to be one of the greatest contributing factors.  

Factors contributing to the surge in ORC include: 

• Increased sophistication among theft networks, including online resale of stolen goods. 

• Limited law enforcement resources, exacerbating the difficulty in combating widespread theft activity. 

• Legislation gaps, such as the $950 felony theft threshold under Proposition 47, which critics argue incentivized low-level, repeat offenses. 

This surge has not only impacted retailer profits but also created safety concerns for employees and customers, leading California to pass new workplace safety laws such as SB 553. Proponents of Prop 36 hope that giving prosecutors more tools to punish repeat theft offenders and smash-and-grab participants can help deter the explosion of these crimes.  

How Will This Impact LP and AP Professionals? 

The rise in retail crime and store violence has placed significant strain on LP/AP teams, which are already grappling with limited resources. For retailers in California, Prop 36 offers the possibility of increasing LP measures with: 

• Increased Deterrence: By lowering the felony threshold and introducing harsher penalties for repeat offenders, Proposition 36 could deter potential criminals, reducing theft incidents over time. 

• Enhanced Collaboration with Law Enforcement: The law encourages more robust partnerships between retailers and law enforcement, enabling quicker and more effective responses to theft incidents. 

• Focus on Organized Crime: LP teams can now work alongside authorities to build stronger cases against theft networks, potentially dismantling entire ORC operations rather than targeting individual offenders. 

If fully enacted, Proposition 36 is expected to influence retail crime prevention strategies starting in early 2025. Retailers and LP/AP teams may need to work more closely with local law enforcement as departments adjust to the law’s provisions, potentially increasing arrests and prosecutions. 

LP teams would be wise to enhance theft documentation and reporting practices, as law enforcement may request detailed records to prosecute offenders under the new rules. Agilence Case Management provides an easy-to-use centralized platform for incident management, allowing store personnel to record case details and share with law enforcement. Case Management also enables LP teams to connect and analyze cases and trends, allowing users to identify repeat offenders and ORC groups so they can be prosecuted.