A new Texas law significantly increases criminal penalties for organized retail theft—and most retail owners haven't heard about it yet.
Most Texas retail owners don't realize that a provision buried in Senate Bill 1300 is about to change the criminal stakes for organized retail theft in their stores. Starting September 1, 2025, every penalty tier for this crime moves up one degree—turning conduct that used to be a misdemeanor into a felony, and felonies into more serious felonies.
Under the amendment to Section 31.16(d) of the Texas Penal Code, organized retail theft now carries enhanced penalties across the board. Here's the practical effect:
Previously a misdemeanor, now a state jail felony: Theft of merchandise valued between $750 and $2,500 when committed as part of an organized retail theft scheme.
Previously a state jail felony, now a third-degree felony: Theft of merchandise valued between $2,500 and $30,000 committed as part of an organized retail theft scheme.
The threshold for felony charges also drops. Organized retail theft involving $2,500 or more in merchandise is now automatically a felony, whereas previously the threshold was higher.
For retail owners, this change has two immediate implications:
Stronger deterrent: Criminals now face felony records and jail time for theft amounts that previously carried only misdemeanor penalties. This raises the cost of organized retail theft significantly.
Clearer legal landscape: If you work with law enforcement or prosecutors on theft cases, you're now dealing with felony-level charges sooner. This can affect how cases are investigated, prosecuted, and resolved.
The law specifically targets organized retail theft—meaning theft committed as part of a scheme or conspiracy, not isolated shoplifting. If multiple people are involved in coordinated theft, or if someone is stealing merchandise with intent to resell it, this law applies.
The new penalties apply only to offenses committed on or after September 1, 2025. Thefts that occurred before that date are prosecuted under the old penalty structure.
Review your loss-prevention procedures and make sure your team knows the difference between ordinary shoplifting and organized retail theft. If you suspect organized theft at your location—multiple people working together, repeat offenders, or coordinated activity—document it carefully and report it to local law enforcement. Prosecutors now have stronger tools to pursue these cases.
If you're part of a retail trade association or multi-location operation, check whether your legal or compliance team has updated your policies to reflect the September 1 effective date.
Source: Texas Senate Bill 1300, Section 5, amending Penal Code Section 31.16(d).