EUGENE — Unemployed paper-mill worker Mark Driscoll said he was just trying to pay his bills when he started doing handyman work more than a year ago.

Driscoll, a North Bend resident, said he was unaware the state of Oregon requires people who do any kind of construction work for pay, including handyman-type fix-it jobs or minor remodeling, to have a state contractor’s license.

So when Driscoll, who did not have a contractor’s license, solicited work via the Internet on the advertising site Craigslist, state construction regulators noticed him and fined him $600 for violating state law.

The recession has pushed many Oregonians besides Driscoll to try and make ends meet by hiring themselves out, unlicensed, to fix fences, clean gutters, paint houses and perform other handyman tasks.

Their rising numbers and the ease of advertising on the Internet has prompted a crackdown by the state Construction Contractors Board. State regulators have issued record numbers of penalties to people like Driscoll.

Facing bankruptcy and possible foreclosure on his home, Driscoll said a fine is the last thing he and other unemployed people need as they struggle in the recession.

“They are fining people $600 who can least afford it,” Driscoll said. “This is unbelievable. They are throwing people over the edge.”

But the crackdown was not inspired by state regulators alone. Licensed handymen and contractors — upset about the chance of losing business to lower priced, unlicensed competitors — alert the Construction Contractors Board when they see ads that fail to list a state contractors license number, which indicates they may be from an unlicensed handyman.

“They are taking work away from me,” said Eugene handyman Joe Coelho. “And they want customers to pay cash, so they are not paying any taxes to help out the state or the city.”

Shane Navarro, a Veneta-based general contractor who is doing handyman work because of the construction slowdown, said unlicensed handymen work for as little as $10 or $15 an hour.

That’s forced Navarro, a father of five, to work for less than he used to.

“My rates used to be $50 an hour. Now they are $35,” he said.

State laws requires contractors, landscape contractors, plumbers and other tradespeople to be licensed. The licenses are meant to protect consumers and contractors, regulators say.

To get a license, contractors must have a $15,000 bond that can pay consumer claims related to disputed or shoddy work, plus liability insurance to cover accidents on a homeowner’s property.

“Licensing is about financial protections for the consumer,” said Gina Fox, education manager for the Construction Contractors Board.

Tipped by legal contractors, the state board checks Craigslist, free classified publications and even flyers posted on grocery store bulletin boards for illegal handymen, Fox said.

The scrutiny led the agency last year to levy 396 fines against people who advertised or submitted work bids without being licensed, compared to 95 just two years earlier.

Still, Driscoll argues that financially struggling people shouldn’t be penalized for seeking work, especially if they were unaware that they needed a license to do handyman jobs.

He said the Construction Contractors Board should give unlicensed handymen a warning before levying the fine.

But Fox said warnings don’t work. The agency tried warning people to stop advertising on Craigslist, she said, but the warnings were ignored.