I know that I can't be the only one who is curious about this. Is it illegal to drive around with a peeling New York State License Plate? Unfortunately for those of you dealing with this problem the answer is yes.
WHEC in Rochester did a report on this and found out the plates are made by civilian staff and inmates at Auburn Correctional Facility using raw materials purchased from a variety of vendors including 3M. So what's the reason for the peeling? They say that poor production is most likely the cause.
Good news! You can get a replacement plate from the DMV for $20. So that's probably $20 well spent instead of landing yourself a ticket.