Does Laserfiche have the ability to report on users that violate security?

Audit Trail might be what you're looking for here, but it really depends on what kinds of scenarios you're hoping to report on, so it's hard to give a good answer to this without more details. 

Explain if any formal disciplinary or sanction policy is established for employees who have violated security policies and procedures. Also detail if employees are made aware of what action might be taken in the event of a violation, and if disciplinary measures are stated in the policies and procedures.

I'm not sure if you intended this as an additional question or simply as context. Establishing internal policies for things like attempts to access information despite Laserfiche Server security, attempts by administrators to configure security in a way that violates internal policy, or disciplinary procedures would all be things that need to be decided within internal management, not something to be performed by Laserfiche software. But you might use Laserfiche to help keep internal security policies easily updated and accessible for employees to view, as well as enforce and document a standard procedure for handling discipline if personnel problems occur related to security.