Wrong. I know that myth gets repeated a lot, particularly in the Toronto area, but there is no law at any level anywhere in Canada that says the "tug" part of a rub & tug is okay.
See the thread started by Perry Mason on his argument for defending MPs against bawdy-house charges.
http://www.massageplanet.net.ca/vbulletin/showthread.php?t=69390
Lawyerese arguments aside, LE can charge any MP providing HJs any time they want to.