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Preheat your smoker to 250ºF with the lid closed.
Add the bacon to a large smoker-safe skillet at room temperature before placing the skillet over a medium heat. This allows the bacon fat to render evenly.
Once the bacon is just shy of crispy, about 4-5 minutes, add the onion and pepper. Cook for 4-6 minutes until the veggies soften and begin to pick up a little color.
Add the brown sugar and chili powder. Cook for 30-60 seconds, stirring everything together, until the brown sugar has softened and the chili powder is fragrant.
Remove the pan from the heat and add the baked beans, BBQ sauce, mustard, and Worcestershire sauce to the skillet. Stir everything together, adding the bay leaves last.
Smoke for 2-3 hours, stirring every 60-90 minutes, until the beans are thick and saucy and have developed a smoky flavor to your liking. Remove the bay leaves and serve warm.