Preheat oven to 350° F. Spray a 9x13 inch baking dish with non-stick cooking spray and set aside.
Cook pasta al dente, according to package directions. Drain and set aside.
Heat a large skillet over medium heat. Cook the ground sausage, diced onion, and 1 Tablespoon Italian seasoning until sausage is no longer pink and onions are translucent. Stir in the minced garlic and cook about 1 minute. Remove from the heat and set aside.
In a large bowl, stir together the pasta sauce, pizza sauce, salt, and pepper until well-combined. Pour 1 cup of the sauce into the bottom of the prepared baking pan.
Add the drained pasta to the baking dish and top with sausage mixture. Pour the remaining sauce over the meat.
Sprinkle with mozzarella cheese and layer the pepperoni slices on top of the cheese. Sprinkle the remaining 1 teaspoon Italian seasoning on top.
Bake for 30-40 minutes, or until cheese is melted and the sauce is bubbly. Top with fresh basil if desired and serve immediately.