[molson]

I think the plain meaning of that term is that context is just another way of saying stealing. To make sure they cover the situations where a U.S. flag that is the properly of the U.S. government, is hanging in some public place, and it's burned right there.

So sub-section 3 just makes stealing/converting property of a flag a special kind of stealing/converting. It doesn't create a new criminal activity. (or wouldn't have if it passed).