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The Bush Turnpike in Texas no longer accepts cash as of July 1, 2009. Based on the federal Coinage Act of 1965, I believe this is clearly illegal.
The Coinage Act (31 U.S.C. 5103) states: "United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues."
What's more, with the advent of "ZipCash" the North Texas Tollway Authority (NTTA) now certainly falls under the Fair and Accurate Credit Transactions Act of 2003 (FACTA) definition of “creditor” as "any entity that regularly extends or renews credit – or arranges for others to do so – and includes all entities that regularly permit deferred payments for goods or services." "ZipCash is the NTTA’s “drive now, pay later” option for customers without TollTags," reads their advertising literature. "High-speed cameras take pictures of the license plates of vehicles without TollTags. Invoices for the tolls are then sent to the registered owner of each vehicle."
This means that the NTTA is also regulated by the FTC's new Red Flags Rules, which apply to any "creditor" that "offers or maintains 'covered accounts.' A covered account is (1) an account primarily for personal, family, or household purposes, that involves or is designed to permit multiple payments or transactions..." The NTTA's "Toll Tags" accounts fit squarely into that definition. (I wonder how hard the NTTA has worked on their required Red Flag Identity Theft Protection Program...)
According to the US Treasury, the Coinage Act ensures that "all United States money as identified above are a valid and legal offer of payment for debts when tendered to a creditor."
Class action lawsuit, anyone?