Set Instant Pot to "Saute" setting and render fat from the bacon. After about 5-7 minutes, the bacon should be browned and crispy. Remove the bacon from the pot and set aside on some paper towel.
Add frozen onion and green pepper to the Instant Pot and let saute in the bacon fat until softened. About 4-5 minutes. Once the vegetables are softened, add the minced garlic and stir until aromatic. This will only take about 30-60 seconds.
Add the tomato sauce, smoked paprika, salt, sugar, crushed red pepper flakes, and Better than Bouillon. Stir.
Add the dried pinto beans and stir into the tomato sauce mixture. Add 6 cups of water and bay leaf.
Cover the Instant Pot and put on "Manual" setting for 60 minutes. After the 60 minutes, let the instant pot come to pressure naturally (about 20-25 minutes). Stir and season to taste. Serve over rice or with skillet cornbread.