In a medium saute pan, heat the oil and annatto seeds over medium heat until sizzling. Lower the temperature and cook until the oil turns yellow, about 5 minutes. Turn off the heat. Using a slotted spoon, remove annatto seeds and discard.
Reheat the annatto oil over medium-high heat. Saute chile and garlic, stir, and cook for 30 seconds. Add sausage, tomato, and bay leaves; cook and stir until heated through.
Stir in cooked rice. Remove and discard bay leaves. Season with salt and pepper. Serve warm.
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