EXCLUSIVE

4:35 PM PT -- The D.A.'s Office tells TMZ the case didn't rise to felony level because Venit did not make contact with Terry's skin when he allegedly grabbed his genitals, and also because Venit didn't restrain Terry.

Terry Crews' criminal complaint against William Morris Endeavor agent Adam Venit has been rejected by both the L.A. County D.A. and the L.A. City Attorney ... TMZ has learned.

Crews filed a police report claiming sexual assault ... that Venit grabbed his genitals during a Hollywood party.

We've learned the D.A. rejected a felony filing and sent the case to the City Attorney, who concluded the case was barred by the statute of limitations. The incident occurred in February 2016 and the statute for a misdemeanor is 1 year.

It appears the D.A. rejected a felony filing because the alleged conduct did not rise to the level of a felony. If the D.A. felt it was felony conduct she could have filed the case because a felony would have been within the statute of limitations.