Why waste good helicopter parts? I would have to think that the materials used in military applications are more robust than commercial. Refurbishing old parts isn't bad so long as it's done safely. The article says that the helicopter parts are inspected visually every 25hrs, a tear down is done every 125hrs, and any anomalous issue gets them grounded. No mention of problems with the refurbished copters.
Honestly, I think this is a very smart and efficient move on the part of the state. Reuse when possible, so long as it doesn't jeopardize safety.