Depends were you live. Some states / cities are tougher than others. But I would say that they are not supposed to be smoking. Talk to your landlord or if they are not helpful maybe talk to your neighbor.
You should talk to the landlord regarding this issue. I do not think I can answer that as well. If you think that smoking in the balcony disturbs you, they should do something about it.
My lease specifically says no smoking in the suite but the person in the apartment underneath me goes out on the balcony and smokes stinky cigars for hours. Is the balcony considered in the suite? or is the balcony considered outside the suite?