State Government Will Not Do Anything About Illegal Unlicensed Business. What Can I Do?

I operate a business that is heavily regulated by my state gov't. A privileged license is required that takes 6 months to get. In addition, a state and county business license is required as is workers comp insurance. My business has to pay special taxes to the state, maintain records, have specific qualified employees. It is a gross misdemeanor to operate the business without a license and each day is a separate criminal charge.

A new competitor has been operating for 18 months with no license. No only do they not have a privileged license but they do not have a county or state business license either, nor mandatory workers comp insurance.

I have reported them to the state gov't agency that overseas our businesses. They say "we sent them a letter to c&d their business operations". But that's it. They refuse to do anything else.

Is there any legal avenue we can use to force the state gov't to shut this business down or take legal action against them? The way they are flaunting the law is ridiculous and they are just getting away with it.