<?php
$dynamic_list = "AZ, CA, CO";
$static_list = "MN,WA,IA";
$search = "AZ";
if ( strpos($dynamic_list . ',' . $static_list, $search) == false && !empty($search) ) { // check string is not empty + that it is not on any of the lists
echo 'not found: String '.$search.' was not found in lists';
} else {
echo 'found';
}