I have a 2 yr old and my boyfriend smokes, not anywhere near her but is the smell & smoke residue on his clothes and breath harmful to her in any way?

A little bit harmful: Every person, place, and animal has a scent. The question is whether or not a larger number of harmful particles or molecules gets into a baby if held by a person with a smoke-scent, compared to a person with a roofing-tar-scent, a fried-chicken-scent, etc... Many scents are picked up at work; others are self-imposed, such as perfumes. The harm of merely smelling smoky is uncertain but not big.

Yes: Some children, especially those with frequent ear infections or asthma, can have these problems triggered by exposure to smoke. Cilia are small hair like projections in the bronchial tree, that beat to remove secretions from lungs and middle ear. When exposed to cigarette smoke (even on clothing) they beat in reverse; effectively pushing secretions/viruses/bacteria into the lungs/ear.