Governor Pataki and the state Senate want to limit to $100 million the amount of money a tobacco company could be ordered to set aside while appealing lawsuits won by smokers or their families.

Currently, tobacco companies can be forced to set aside billions of dollars in a bond during an appeal, denying the company use of that capital for months or even years while cases play out in court. Last year in Illinois, a judge ruled Philip Morris USA must set aside $6 billion – half of what was originally ordered – while the company appealed a $10.1 billion class-action judgment.

Philip Morris officials said paying the full amount could drive the company to bankruptcy and force it to default on its share of the $206 billion promised over 25 years under a 1998 federal settlement with the tobacco industry. Officials from 33 states signed a friend-of-the-court brief asking the judge to reduce the bond.

Originally part of Mr. Pataki’s executive budget proposal, the language approved Monday by New York’s Republican-led Senate appeared in three paragraphs on Page 123 of a budget bill, according to the Senate’s Web site. The bill would need to be approved by the Democrat-controlled Assembly.

State Senate majority spokesman Mark Hansen and officials in other states that have proposed the limit said the massive bonds could threaten the states’ ability to collect their share of the settlement. New York state and local governments got $3.7 billion under the settlement, in part as compensation for health-care costs blamed on tobacco use.

“It’s a huge gift to the tobacco industry,” said Blair Horner of the New York Public Interest Research Group. Mr. Horner said if tobacco companies are allowed to keep a restricted reserve far less than the court-ordered payment they face, there will be an incentive to delay appeals beyond the lives of plaintiffs.

“The tobacco bond cap is designed to protect the state and its taxpayers from losing funds it is scheduled to receive from the tobacco companies as part of the tobacco settlement,” said a budget spokesman for Mr. Pataki, Michael Marr. He noted many other states have done so.

“I can’t believe a legitimate case can be made in public for supporting this,” said Assemblyman Alexander Grannis, a Manhattan Democrat and leading anti-smoking advocate in the Legislature. “This is a favor for a lobbyist.”

Altria Group, the parent of Philip Morris USA, said the measure is intended to protect tobacco companies’ right to appeal.

“We believe it’s only fair that companies pay proper judgments under the law. However, due process demands that we have a right to appeal,” said an Altria spokeswoman, Dawn Schneider.

She said 38 states have caps or don’t require appeal bonds. Nine states approved bond caps in 2004 and 14 acted in 2003, she said. Last year, Hawaii, Iowa, Minnesota, Nebraska, South Carolina, Georgia, Oklahoma, Virginia, and West Virginia adopted caps, Ms. Schneider said.

California, Pennsylvania, Minnesota, and Oregon are among other states that have adopted caps ranging from $25 million to more than $100 million.

Tobacco remains big money for lawmakers.

Altria Group spent $1 million last year lobbying New York’s legislators on food and tobacco issues, according to state lobbying records.

Since 2003, Altria contributed $43,015 to Republican, Democratic, and Conservative campaigns, according to state election records. That includes $1,000 in August to the state Republican committee and $6,000 in September to the Senate Republican Campaign that was in the midst of a close election year in which the GOP advantage was threatened. The same week as the Republican Senate donation, Altria contributed $3,800 to the Democratic Senate Campaign.

Since 1999, Philip Morris made $453,684 in campaign contributions to Democrats and Republicans including Assembly campaign committees, according to election records.

“To single out a single industry is the height of hypocrisy, especially this industry,” Mr. Grannis said. “The reason they are in this mess is they lied and deceived people for so long.”

The bill to protect tobacco companies comes a month after state health officials said they hoped to stem criticism of state anti-smoking efforts by pledging a stronger campaign. New York plans to spend $1 million a month this year on a media campaign.