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I kinda wondered about this recently. Do negative levels reduce your effective hit dice as well as everything else? Say, for example, you've got a 7th level fighter versus a 7th level wizard. The wizard hits the fighter with an enervation and gives him 4 negative levels. The next round, the wizard uses sleep on him. Normally, sleep will not function on something with more than 4 or 5 HD (I can't remember which) but have the fighter's hit dice effectively been reduced to 3 by the enervation? I wonder.....

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Do negative levels reduce your effective hit dice as well as everything else?
I'd say yes, but it's not a slam dunk:
Energy Drained
... Each negative level gives a creature the following penalties: -1 penalty on attack rolls, saving throws, skill checks, ability checks; loss of 5 hit points; and -1 to effective level (for determining the power, duration, DC, and other details of spells or special abilities). ...
I'd read the "-1 to effective level" as reducing the effective character level (and thus hit dice). It can certainly be read otherwise.

Lawgiver |

It depends, I guess, on how much fidelity or difference you want to impart beween 3e vis’ 2e. In 2e, remember, any life draining is solidly in levels. A 5th level fighter who misses his saving throw for level drain when bitten by a vampire goes to 3rd level, period. That would mean he can now get tagged by that sleep spell. Since 3e “supposedly” came out of 2e (just an uber-revamping of the rules, mechanics and concept) then the intent would seem to be to maintain fidelity with that earlier concept (can’t prove it by any means).
In Doug’s quote, above, everything except the hit points looks like a direct loss of a level worth of abilities similar to what I would expect to see in 2e, except the Hit Points. In 2e, we would have to re-roll the character’s HTK at the new reduced Hit Dice for his new reduced level. With the above, it’s just -5 points for each “effective level’. The above vampired character would lose 10 HTK, whereas in 2e the character could lose a lot more than 10 HTK with a bad roll.
If you alter the effect one way and not another, find exceptions, or impose limitations, you’re suddenly in the arena of defining more exceptions that rules, which can get very confusing. Consistency is a key. Negative energy effects are negative energy effects and work the same way for everyone, regardless of source. It doesn't matter if the character is hit by a spell, magic item, undead creature, or any other way, the effect is energy drain (and level loss, as 2e used to call it).
So, I would say yes, any character who is energy drained would use the new, lower, “effective” level for all computations, including that pesky Sleep Spell, unless specifically exempted from this effect in the description of that spell, magic item, et al, ad nauseum.

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Do negative levels reduce your effective hit dice as well as everything else?
There was a question in the WotC FAQ that dealt with negative levels and a pixie. The question had to do with whether or not the negative levels affected the ECL or the HD. The answer with that was the HD.
If a 7th level fighter gains 7 negative levels, does he die? Why? Because he is essentially a zero level character. I feel that the same logic could be applied to this scenario with the sleep spell.
At least that is my thought on it.

Shroomy |

I would say "No," as the -1 effective level penalty applies to die rolls and calculations. The HD limit is not a calculation it is a straight up and down threshold. Calculating DC of spell-like abilities, caster level checks, etc. would be the province of this penalty. However, even if you can't use sleep, a NPC fighter is pretty much screwed with four negative levels.

Rathendar |

My vote is with 'no' as well.
-1 to effective level for spell casting details doesn't remove abilities completely.
A 14th level wizard with 4 negative levels does not lose every 6th and 7th level spell he knows automatically because of it.
A 10th level fighter with 9 negetive levels does not lose weapon/armor training or other class features for being level 10.
He is STILL a level 10 character so should be treated as such for spell parameters.

cibet44 |
I would say no as well. The negative levels only become "actual lost levels" after you miss the 24 hour saving throw. Until then they are just penalites to the abilites as described for a negative level. In order to actually lose a level you need to lose experience points. Since negative levels DO NOT effect experience points you are not actually losing a level, you are just temporarily penalized.
To put it simply: a "Negative Level" is not the same as a "lost level".