Mr Reed was accused of destroying a different Ten Commandments monument in Oklahoma three years ago, media reports say.
He was diagnosed with a schizo-affective disorder (a mental health condition) after that incident but was released from hospital in January 2015 as part of an agreement with the Oklahoma County district attorney's office in which he pledged to continue receiving treatment and therapy, Tulsa World reported at the time.
The initiative to build the statue was led by Arkansas Senator Jason Rapert, who sponsored a 2015 law to display it on state grounds.
Mr Rapert said it "honoured the historical moral foundation of the law".
But opponents including the American Civil Liberties Union said that its appearance amounted to "an unconstitutional endorsement of religion" - they threatened to take legal action to have it taken down.
The statue was financed by more than $26,000 in private donations, local media reported.
The only true shield standing between women and the bible, that handbook for the subjugation of women, is a secular government. U.S. citizens must wake up to the threat of an encroaching theocracy, and shore up Thomas Jefferson's 'wall of separation between church and state'.
The Old Testament is responsible for more atheism, agnosticism, disbelief - call it what you will - than any book ever written; it has emptied more churches than all the counter-attractions of cinema, motor bicycle and golf course.