Anthony, this is a classic illustration of propaganda--which is what you should expect from Fox, a propaganda outlet wholly controlled by a single individual who embraces an extreme, rightwing philosophy (Rupert Murdoch).
Here are the facts: California has amended its criminal code and reduced theft of items valued at $950.00 or less from a felony to a misdemeanor. As I noted in this article, over 80% of our police departments have a staff shortage--and in some cases, that shortage may be severe. They are not able to respond immediately to every call or complaint, but instead must prioritize them. Felonies are more serious crimes and the police will prioritize solving them above solving misdemeanors.
Fox has taken this information and given it a spin that is way outside of context: liberal and leftist Californians have given looters permission to steal up to $1,000 without penalty. While it is an unfortunate fact that a lot of petty crime--such as looting--is never solved or prosecuted, Fox's take on this revision to the criminal code is simply not true and is intended to reinforce the outrage and victimization that people such as your parents may feel.