It's apparent from all my vent posts that I don't totally agree with how the shop I work at is run. Everyone breaks the rules all the time, and it's frustrating to watch, and know that you are the only one following the rules, and who seems to give a damn. What I've learned from all of that, is that it is NOT going to change! I've also learned to ignore those not doing their job, and concentrate on my own, and my clients.
I also understand you like the location you're at, and who you work with, because so do I. And well...the smoking and drinking, at least where I live it's against the law. Regardless of whether it's his salon, and can do what he wants, let an inspector catch your boss smoking, or a client smell liquor on his breath, and it's over for him. Unfortunately, it will also be over for all of you if he loses his business.
I don't suggest you leave right now because of this, because you like it there, but I do suggest you start taking your client's contact information, because it's only a matter of time before your boss's rule breaking catches up with him, and find yourself looking for a new job. You might also end up opening your own salon too! Good luck!