It is illegal to take or keep a live sand dollar and it carries a hefty fine. If it has hair or is in the water, it is alive and should be placed back into the water, with the hair side down against the sand. Sand Dollars eat tiny particles of food that float in the water. Dead Sand Dollar shells are called a “test”.Click to see full answer. Herein, is it against the law to take sand dollars?In most states taking a live sand dollar is illegal, but laws vary about collecting a dead one, so check for signs at the beach or ask an employee. When they are alive, sand dollars secrete echinochrome, a harmless substance that will turn your skin yellow.Also Know, is it illegal to collect sand dollars in Florida? State Regulations. Collecting seashells is generally allowed on public beaches and shoreline areas in Florida, as long as the shells have no living creatures within them. The same shelling rules apply to starfish, sand dollars and sea urchins in many areas: If the creature is alive, leave it alone. Accordingly, what can you do with sand dollars? Steps Choose your sand dollars carefully. Don’t collect living sand dollars. Collect the dried-out exoskeletons that wash up on the beach. Soak the sand dollars in fresh water. Gently brush the shells (optional). Soak your shells in bleach. Rinse the shells. Let your shells dry. What does a live sand dollar look like?When sand dollars are alive, they’re actually a purple color. Their fuzzy spines are covered in tiny flexible bristles called cilia which they use to move food along the ocean flood to a central mouth. When they die, their skeletons get bleached by the sun, turning them white, and the small spines fade away.