The CSLB has the "SWIFT" unit that has been doing sting operations on unlicensed contractors. They set up once in awhile, get a (very few) couple of hacks, and proclaim their successes loudly.
In the meantime, Craigslist is just loaded with unlicensed "contractors" advertising for work that requires licensing. (I flag them as prohibited every chance I get, enough people doing the same will remove the ad)
Both RR's area and mine are just full of these guys that will do a service change for you, or build you a whole new house. Handymen advertise "Electrical" with city business license numbers on the sides of their trucks where a State Contractors License should be.
This all seems to go right over the head of the CSLB, who don't do a darn thing about it.
The message seems to be
Get a license, insurance, work legit, pay your taxes, but remember....No good deed goes unpunished.
