Has this been clarified in Mpls area?  I will be there shortly and hope the snow is gone and won't freeze my AZ butt where its been in the 80s - and no snow.

In Arizona, LE has to keep their shorts on and cannot engage any sexual activity like on your list.  Legally they can but it is against public policy.  In one case before a Grand Jury, the question was asked if the arresting officer had any sexual contact, as they would not indict if there was.  

in another case (Phoenix Temple) a gal was in bed with an undercover who tried every trick in the LE book to make her agree to a sex act for a "fee arrangement" but she was smart enough not to and he had to give up trying to bust her for prostitution.  Sadly, however, since she worked for the Temple she was indicted along with 38 other wonderful gals for being associated with a criminal enterprise and could have faced up to 40 years in prison if didn't take a felony plea deal.

I know some cases have been tossed out because the undercover officer went too far but I haven't seen anything that defines exactly where that line is.

Legally they can outright have sex.  Most department policies don't allow that though.

The best way to avoid this? NEVER talk about money.  Ever.  Never discussed at all.  Classy ladies (like myself!) will never touch the envelope or discuss it contents before, during, or after the session.  We also do NOT upsell.  If a lady (of gentleman/possible client, for that matter) starts talking about the cost of playtime or certain acts, get the heck out of there.  Not worth it.