It illegal in NJ:

http://www.state.nj.us/transportatio...gulations.shtm

"39:4-11.1 Brakes.
A bicycle must be equipped with a brake that can make wheels skid while stopping on dry, level, clean
pavement. "

It is still illegal in Oregon:

"Oregon Revised Statute (ORS) 815.280(2)(a) which states,
A bicycle must be equipped with a brake that enables the operator to make the braked wheels skid on dry, level, clean pavement. strong enough to skid tire."