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In the event it is discovered that any applicant for a new business license has done business in the city during a previous year without a proper license as required by this or a previous city ordinance, the license officer shall not issue a license to such applicant for the current year until and unless said applicant pays to the city the license fee which would have been applicable for his business during the preceding year when the applicant failed to apply and obtain such license, together with a penalty in such amount as established by resolution of the city council for such preceding year that would be payable pursuant to the provisions of subsection 3-1-7C of this chapter. (2003 Code)