Most States regulate the construction industry through licensing laws that require contractors to pass a trade test, provide dependable references, and establish sufficient financial responsibility to engage in the construction business. A small minority work as unlicensed contractors, performing substandard work with no warranties and subjecting homeowners to civil liability under their homeowners' policies if contractors or their employees are injured on the job. Moreover, homeowners have little recourse if the work is not performed properly. Contracting without a license is an administrative or criminal violation in States that license contractors, and many municipalities also require some form of business registration and impose administrative or criminal penalties for noncompliance. Most State regulatory agencies actively pursue unlicensed contractors. Nevada is one such State, where the first offense is a misdemeanor, the second a gross misdemeanor, and the third a felony. The Special Investigations Unit of the Nevada State Contractors Board was established to pursue unlicensed contractors via the use of proactive patrols of commercial and residential construction site. These officers are statutorily empowered to issue on-scene criminal citations, cease-and-desist orders, and disconnect the telephone numbers of unlicensed contractors. Additionally, Nevada has established a law enforcement awareness program that instructs local law enforcement officers in contractor licensing requirements and the tools they need to better enforce contractor licensing laws in the course of their duties. 2 notes