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GAO reviewed whether the Federal Aviation Administration (FAA) was responsible for the payment of a building permit fee for a FAA construction project located in Farmington, Minnesota. GAO found that: (1) a state retains jurisdiction over federal lands or property within its territory until Congress enacts legislation specifically dealing with the property; (2) whether a state building code is applicable to a private contractor depends on the relative interests of the government and the municipality; (3) if it were appropriate to collect a building permit fee, it would be the contractor's sole responsibility to obtain any necessary licenses and permits applicable to federal, state, and municipal codes; and (4) since the Minnesota Building Code is not applicable to the FAA project, neither FAA nor its contractor can be legally required to obtain a building permit.

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