It's up to him if they let him play during his suspension, but he has to be on an NHL roster for the games to come off his suspension. The AHL generally allows players to play when they are suspended in the NHL, only when it's a major suspension do they make the player sit.
It's actually up to the president of the AHL if Smith can serve his time at the AHL level.
All the AHL can do is issue a suspension of their own which does NOT affect the NHL suspension that he has to serve while on the NHL roster.
The Flyers had to do that with one of their boneheads a few years ago. They had to call him up before every game and then send him down immediately afterwards in order to take games off his suspension while he played in the AHL.
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