Council File 23-0670-S2 - LA Council Tracker

Timeline

November 04, 2025

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Report from Housing and Homelessness Committee - 7-30-25

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What is Being Proposed?

The Housing and Homelessness Committee is recommending that Los Angeles City Council approve a comprehensive plan to use Opioid Settlement Funds for expanding community-based opioid remediation services across the city. The main action includes allocating $2.1 million to the Department on Disability (DOD) to create a competitive bidding process for organizations to deliver opioid recovery services in seven regions: East Valley, West Valley, East, Central, Harbor, West, and South Los Angeles. Each region would receive $300,000 in funding. The committee also recommends streamlining reimbursements for existing opioid services and establishing a new Westlake Area Harm Reduction Drop-In Center through a City/County partnership.

Why This Is Needed

Los Angeles has received opioid settlement funds from pharmaceutical litigation and expects to receive approximately $4-5 million annually for the next 18 years. Rather than letting these funds sit unused, the city aims to maximize their impact by supporting proven opioid remediation strategies. The recommendations ensure that existing programs administered by the Housing Department and Department on Disability receive proper reimbursement, while also expanding services to underserved areas through community-based health organizations.

Key Details

The Opioid Trust Fund currently has approximately $22 million, with $7.9 million already encumbered for inpatient services and $3 million set aside for the Westlake Drop-In Center, leaving about $11.1 million available. The Committee voted 2-1 (with one absent) on July 30, 2025, to approve these measures. Additional requirements include staffing support funded through the settlement money and 90-day and ongoing progress reports to track outcomes.

Impact

This plan will make opioid recovery services more accessible across all seven regions of Los Angeles, particularly benefiting unhoused individuals and those with substance use disorders. It affects community-based health organizations that will compete for contracts, city departments coordinating the programs, and most importantly, residents struggling with opioid addiction who will have expanded access to harm reduction and remediation services.

Report from Chief Legislative Analyst dated 6-20-25

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What is Being Proposed?

The Chief Legislative Analyst is recommending that Los Angeles develop a comprehensive Opioid Remediation Program using settlement funds from pharmaceutical companies. The report provides three main recommendations: (1) ensure existing city opioid programs receive proper reimbursement from settlement funds, (2) pursue a City-County partnership to establish a Westlake Area Harm Reduction Drop-In Center, and (3) choose between two options for expanding opioid services—either through the Los Angeles Housing Department (LAHD) with $3.5 million for seven city regions, or through the Department of Disability (DOD) with $2.1 million for the same areas.

Why?

The opioid crisis demands coordinated response using settlement funds that must legally be spent on opioid remediation activities. California Department of Health Care Services guidelines require that at least 50% of settlement funds go toward high-impact activities like harm reduction, treatment infrastructure, and addressing vulnerable populations. Currently, multiple city departments (Mayor's Office, LAHD, DOD) are administering opioid-related services but not systematically capturing reimbursements. The report also notes that harm reduction services are evidence-based and highly effective—people using these services are five times more likely to enter drug treatment.

Key Details

The city has approximately $22 million in Opioid Settlement Trust Fund available, with $7.9 million already committed to inpatient treatment and $3 million reserved for the Westlake center. The remaining $11.1 million is available for new programs. The city will receive an estimated $4-5 million annually for approximately 18 more years. Option A (LAHD) proposes contracts of $500,000 per region; Option B (DOD) proposes $300,000 per region. Both options cover East Valley, West Valley, East, Central, Harbor, West, and South Los Angeles.

Impact

These programs directly benefit residents experiencing homelessness and opioid use disorder by expanding access to naloxone distribution, syringe services, treatment connections, and overdose prevention. The proposed Westlake center specifically addresses Council District 1 needs. There is no impact to the General Fund, as settlement funds specifically designated for opioid remediation finance these initiatives. Success depends on proper invoicing and reporting to ensure reimbursement and continued annual funding.

Report from Chief Legislative Analyst dated 2-21-25

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What is Being Proposed

The City's Chief Legislative Analyst is recommending that the City Council authorize the Department on Disability (DOD) to release a Request for Proposals (RFP) to contract with community-based health organizations to deliver opioid remediation and harm reduction services in four high-impact areas: Westlake, San Fernando Valley, South, and Metro. The proposal would allocate $1.2 million in Opioid Settlement funds over three years, with up to $300,000 per area. Additionally, the Council is asked to instruct the City Administrative Officer to develop a staffing plan for administrative support of the program.

Why This Matters

Los Angeles is experiencing a significant opioid crisis, particularly fentanyl overdoses. The City has received approximately $22 million in settlement funds from opioid manufacturers and distributors. County data shows that the 90057 zip code (MacArthur Park/Westlake area) experienced 80 unintentional overdose deaths among homeless individuals in 2021-2022 alone—more than any other zip code in the County. The proposal aims to expand treatment and harm reduction services in the most severely affected communities while maintaining existing programs already operating in these areas.

Key Details

The program would provide eligible services including treatment for opioid use disorder, harm reduction services (such as naloxone distribution and overdose response), connections to healthcare, and support for justice-involved individuals and pregnant women. Each of the four areas would receive up to $300,000 for a three-year contract period. The DOD was selected to administer the program because of its existing experience managing health-related service contracts and coordination with County agencies and community partners. The report notes that successful programs like the MacArthur Park Overdose Response Team and the Crocker Street Enriched Residential Care Facility demonstrate the feasibility of such efforts.

Impact

This directly affects residents struggling with opioid addiction and their families in Westlake, San Fernando Valley, South, and Metro areas—communities with the highest concentrations of fentanyl overdose deaths. The program will increase access to treatment, prevention, and recovery support services while supporting harm reduction efforts. The initiative represents a shift from the City taking a "support role" to becoming an active funding partner with County agencies and community organizations in addressing the overdose crisis.

Council Action dated 6-27-24

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What is Being Proposed?

The Los Angeles City Council adopted a Neighborhoods and Community Enrichment Committee Report regarding the management and use of Opioid Settlement and Tobacco Settlement Funds. The council approved this report with two amending motions (18A and 18B) that modified the original committee recommendations.

Why?

Settlement funds from opioid and tobacco litigation provide Los Angeles with resources designated to address public health and community needs related to these substances. The committee reviewed how these settlement funds should be allocated and used, including expert testimony on the most effective approaches for community benefit.

Key Details

Council Meeting Date: June 25, 2024 Vote Results: 12 YES votes, 1 NO vote (Councilmember Rodriguez), and 3 ABSENT Amendments: Two motions (18A by Hernandez-Blumenfield and 18B by Blumenfield-Hernandez) modified the original recommendations before adoption

Impact

This action determines how substantial settlement funds will be used across Los Angeles to address opioid and tobacco-related public health issues and community enrichment. The decision affects public health initiatives, community programs, and how resources are allocated to neighborhoods impacted by these issues. The amendments suggest the council refined the approach to better meet community needs.

Report from Neighborhoods and Community Enrichment Committee_3-20-24

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What is Being Proposed?

The Neighborhoods and Community Enrichment Committee is recommending five actions to manage Los Angeles's Opioid Settlement and Tobacco Settlement Funds. The most significant recommendation is creating a "MacArthur Park Harm Reduction Center" with an initial $3 million allocation to address substance use issues in that area. Additional recommendations include establishing annual reporting procedures, creating an evaluation framework for future funding proposals, and documenting existing treatment programs.

Why This Matters

Los Angeles has received settlement money from opioid litigation as compensation for the opioid crisis's impact on communities. The committee is establishing guardrails to ensure these funds are spent legally, strategically, and equitably. The recommendations specifically aim to target resources toward areas with the highest fentanyl overdose rates and greatest community need, while consulting with the City Attorney to verify compliance with settlement agreements.

Key Details

Annual reporting deadline: September 1 MacArthur Park Harm Reduction Center: $3 million initial funding The Chief Legislative Analyst has 90 days to develop an evaluation matrix using fentanyl death data, equity indices, and disparity measures The Department on Disability must report within 30 days on current substance use treatment programs and their service areas All three committee members voted yes (Hernandez, Lee, Hutt)

Impact

These recommendations will direct opioid settlement money toward harm reduction services in Los Angeles, with particular focus on high-need areas. Residents in communities most affected by overdoses may see expanded treatment and harm reduction services, though funding amounts for individual neighborhoods will depend on future proposal reviews.

Report from Chief Legislative Analyst dated 10-30-23.pdf

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What is Being Proposed?

The Chief Legislative Analyst is recommending that the LA City Council establish clear processes for managing and spending settlement funds from opioid litigation and tobacco settlements. The key recommendations are: (1) instruct the CAO to report annually by September 1st on available opioid settlement funding and seek Council District proposals for spending; (2) require the CLA and CAO to consult with the City Attorney before proposing any opioid settlement expenditures to ensure compliance with settlement agreements.

Why?

During 2023-24 budget deliberations, the Council approved transferring $11.8 million in Substance Use Disorder Treatment Beds and $11.7 million in Opioid Settlement funds to an Unappropriated Balance, pending guidance on how to spend them. The City has recently begun receiving substantial opioid settlement funds from major litigation against pharmaceutical manufacturers and distributors (estimated $29.6 million to $53.3 million over 18 years), in addition to ongoing tobacco settlement revenue (~$10.7 million annually). The report establishes what these funds can and cannot be used for under California Department of Health Care Services guidelines.

Key Details

Opioid settlements: Five major retailers (Teva, Allergan, Walmart, Walgreens, CVS) totaling up to $18.52 billion nationally; LA's maximum proceeds estimated at $43.18 million Tobacco settlement: City receives approximately $10.7 million annually with no restrictions on use Spending requirements: At least 80% of opioid funds must support opioid remediation; only 20% can fund other opioid-related projects or reimburse past expenses Allowable uses: Treatment programs, harm reduction, naloxone distribution, support for pregnant/postpartum women, incarcerated populations, prevention programs, and workforce development

Impact

This affects residents struggling with opioid addiction by clarifying how the City will deploy substantial new settlement funds for treatment, recovery services, and harm reduction. The annual reporting requirement ensures transparency and allows Council Districts to request specific programs. However, the restricted nature of opioid funds versus unrestricted tobacco funds means strategic planning is needed to maximize impact on the City's substance abuse crisis.

Communication(s) from Public_03-20-2024

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What is Being Proposed?

The People Concern, a major Los Angeles County housing and social services agency, is supporting the City Controller's recommendations in the Opioid and Tobacco Settlement report. They advocate for an annual review process to assess available settlement funds and determine potential uses for these resources in the community.

Why?

The opioid epidemic remains a critical crisis in Los Angeles, with accidental overdose being a leading cause of death among people experiencing homelessness. The People Concern emphasizes that harm reduction—a comprehensive approach to supporting people regardless of their recovery stage—is essential. They argue that a structured, annual planning process will enable the city to deploy settlement resources strategically and adapt interventions as circumstances change on the ground.

Key Details

Submitted by Lizeth Hernandez on March 20, 2024 Council File: 23-0670-S2 The People Concern's approach centers on three principles: housing first, trauma-informed care, and harm reduction They provide substance use treatment connections and support clients throughout their recovery journey

Impact

This affects Los Angeles residents experiencing homelessness and addiction, as well as the broader community. The recommendation aims to accelerate deployment of settlement funds to expand treatment and harm reduction services, enhance community safety, and provide immediate support to vulnerable populations in crisis. The annual review process would allow for flexibility and program adjustments based on evolving community needs.

11 additional document(s)

Speaker Card(s)_10-07-2025

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Communication from Housing and Homelessness Committee Clerk - 7-30-25

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Speaker Card(s)_07-30-2025

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Speaker Card(s)_04-23-2025

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Speaker Card(s)_06-25-2024

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Amending Motion 18A (Hernandez - Blumenfield) dated 6-25-24

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Amending Motion 18B (Blumenfield - Hernandez) dated 6-25-24

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Transmittal Letter from the Neighborhoods and Community Committee to Budget, Finance, and Innovation and Housing and Homelesness Committees_03-21-24

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Communication(s) from Public_03-19-2024

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Speaker Card(s)_03-20-2024

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Communication(s) from Public_03-20-2024

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