This waiving changes all of that however. Smith will now be "on waivers" for 48 hours, during which a team can claim him but only under one of the following conditions (H/T to Larry Coon's CBA FAQ):

It's exceedingly likely that Smith will clear waivers and then become a Free Agent, able to go wherever he chooses. That makes Smith to Sacramento pretty unlikely even if the Kings are interested. Sacramento has no cap space and as such can only really offer Smith a minimum contract, which is also what multiple contenders would be able to offer. Sacramento is about $9 million over the cap currently. Still, that won't stop the Kings from trying.

I say go for it. Just don't set your expectations too high, because this decision will be made by Smith himself, and Sacramento hasn't ever been a premier Free Agent destination.