In a skillet over medium-high heat add the olive oil, onion, jalapeno pepper and diced bell peppers. Saute for 3-5 minutes. To the skillet, add the garlic cooking for 1 minute longer.
Add the sliced sausage to the skillet. Cook for 3-5 minutes or until just until the sausage is beginning to brown.
To the skillet add the petite tomatoes, chicken broth, rice, green chiles, seasoned salt, dry Italian seasoning, black pepper, garlic powder, onion powder, paprika, and red pepper flakes, if using. Stir to combine. Scrape the little bits off of the bottom of the pan.
Bring the rice to a gentle boil, then reduce the heat to low and cover. Simmer on low for 25-30 minutes or until the rice is tender and the liquid is absorbed.
Remove from the heat, let stand for 5 minutes, then fluff the rice mixture with a fork and serve garnished with fresh parsley.
Make-Aheads Tip: You can make this casserole on the stovetop then transfer to a 13x9-inch baking dish and top with shredded cheddar cheese. Bake immediately in a preheated 350°F oven for 20-25 minutes or cover with aluminum foil or plastic wrap and chill in the fridge until baking.