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.
Redford: I'm not sure I do. I've explored every religion, some very deeply, enough to know there's not one philosophy that can satisfy me. Problems can't be solved with one way of thinking. If anything is my guide, nature is. That's where my spirituality is. I don't believe in organized religion, because I don't believe people should be organized in how they think, in what they believe. That has never been driven home as hard as with the Bush administration. If God is speaking to the president, he's speaking with a forked tongue, because the behavior of this administration doesn't seem very godlike or spiritual....Is there an afterlife? As far as I know, this is it. It's all we've got. You take your opportunities and you go for it.