Placing logic inside controller vs view vs model?

I would go with option one but simplify it using the lists() method from the model.

I would go with solution #3. There is no reason a model need only behave in an ORM-fashion. If retrieving a full list of states is a common activity you need to perform, then by all means add it to your model class.

That way if you ever need to do anything like exclude certain states for instance, you can make that change in one single place.

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