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Downey, seated in court prior to his arraignment, faces prison time if convicted on drug charges.

LOS ANGELES, California (CNN) -- Actor Robert Downey Jr. was back in a California court Thursday to plead not guilty to charges stemming from his Thanksgiving weekend arrest.

Downey, 36, pleaded not guilty in January to two counts of felony cocaine and valium possession and one misdemeanor count of being under the influence of a controlled substance.

He had to be re-arraigned after prosecutors agreed Wednesday to reduce the valium charges to a misdemeanor. Deputy District Attorney Tamara Capone said she had agreed with Downey's lawyers that valium possession is a misdemeanor charge under California law.

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A preliminary hearing has been scheduled for July 16 to give both sides time to examine new evidence.

Downey is at a mandatory six-month-minimum live-in drug treatment facility in Southern California following an April 24 arrest for being under the influence of a controlled substance. Prosecutors declined to file criminal charges in that case, instead allowing state correction officials to handle it as a parole violation.

A spokesman for the California state Department of Corrections said Downey will remain under strict supervision and be required to submit to more frequent drug tests as part of his rehabilitation.

Downey was released from state prison in August after serving time for violating his probation on other drug-related offenses.

He was arrested in November at the Merv Griffin Resort in Palm Springs, Calif., after police responded to a 911 caller reporting someone in the room had guns and drugs. No weapons were found.

Capone said police acted appropriately and prosecutors have enough evidence to go to trial. Downey rejected a recent plea bargain after prosecutors demanded he serve jail time.

If convicted, Downey could be sentenced to state prison. He is free on $15,000 bond.

In January, Downey was honored with a Golden Globe trophy for his role in the television series "Alley McBeal" and later received the Screen Actors Guild Award as best supporting actor.