(a) The governor is hereby authorized and directed to create a state agency to be known as the “Tennessee emergency management agency” (TEMA) under the adjutant general for day-to-day administrative purposes and, upon the recommendation of the adjutant general, to appoint a director of TEMA, who shall be the administrator thereof. The director shall hold office at the pleasure of the governor, and shall receive such salary as is fixed by the adjutant general and approved by the governor. The agency shall authorize the creation of local organizations for emergency management in the political subdivisions of the state, and authorize cooperation with the federal government and the governments of other states.

(b) The governor is hereby authorized to appoint such deputy directors of the agency as the governor may in the exercise of the governor's sound discretion deem necessary, and such directors, in the discretion of the governor and upon the recommendation of the adjutant general, may be state employees who shall serve in such capacity without additional compensation.

(c) The director, subject to the direction and control of the governor, acting through the adjutant general, shall be the executive head of the agency and shall be responsible to the governor for carrying out the program for TEMA for this state. The director shall coordinate the activities of all organizations for the agency within the state and shall maintain liaison with and cooperate with emergency management agencies and organizations of other states and of the federal government. For normal day-to-day administrative functions, the director shall report to the adjutant general. During emergency conditions, the agency and director shall report to the governor or the governor's designee. General coordination with the adjutant general shall be maintained. The department of the military shall become a resource for the state as with all other departments and agencies; further, the director shall make recommendations to the governor for the use of the national guard and other state resources as disaster conditions mandate, including, but not limited to, the assistance of local and private agencies. The director shall coordinate with the governor's office on the activation or the potential activation of any mutual aid agreement or compact.

(d) The adjutant general, upon the recommendation of the director, may employ such area directors, professional, technical, clerical, stenographic, and other personnel, and the adjutant general shall fix their compensation and may make expenditures from available funds appropriated for the military department or from funds made available to the adjutant general for purposes of emergency management, as may be necessary to carry out the purposes of this chapter. The director shall be provided with necessary, and appropriate office space, furniture, supplies, stationery, printing and equipment, including but not limited to, radio, radiological and any and all other proper equipment necessary to carry out the emergency management program for the state. The necessary mileage, office expenses, salaries of personnel, postage, telephone and expressage shall be chargeable to any funds available for emergency management.