What is scope of temp table when called by nested stored procedure?

This is two part question:

1. I have two stored procedures: sp1 & sp2. If sp1 creates a temp table #temp then executes sp2 will I have access to #temp in the nested procedure? If not, how to do it in another way?

2. Can a function accept a parameter of type table? I tried but SQL Server give me an error. Why this can't work? Maybe sqlserver should support something like Generic.