The State of Palestine is recent, there being "no Palestine" until the State of Palestine was created is just BS and Cruz should know the difference between the two if he's nearly as smart and well educated as he and his supporters claim he is.
Palestine is the name of an area of land. Not a jurisdiction. Not a nation state. Not a legal authority.
Talking about Palestine is no different than talking about Appalachia. In the sense they both have specific cultures, etc. They are part of various states and/or countries with different legal jurisdictions.