It means both the guy who displayed the flag ("defames, slanders, or speaks evilly or in a contemptuous manner") and the guy who cut it down("willfully and maliciously removes while owned by others") could be guilty of a misdemeanor under Nevada law.
Well, if the guy who took down the Mex flag gets in trouble, I will donate to his defense fund. Personally, I want my country back and I want it back now...