diff --git a/authentication/managers.py b/authentication/managers.py
index 6e1f1d99..882f363f 100755
--- a/authentication/managers.py
+++ b/authentication/managers.py
@@ -58,4 +58,4 @@ class StateManager(Manager):
             return states[0]
         else:
             from authentication.models import get_guest_state
-            return get_guest_state()
\ No newline at end of file
+            return get_guest_state()
diff --git a/authentication/signals.py b/authentication/signals.py
index 7b51f009..1b836ad3 100644
--- a/authentication/signals.py
+++ b/authentication/signals.py
@@ -51,6 +51,17 @@ def state_saved(sender, instance, *args, **kwargs):
     trigger_state_check(instance)
 
 
+@receiver(pre_delete, sender=State)
+def state_deleted(sender, instance, *args, **kwargs):
+    for profile in instance.userprofile_set.all():
+        available = State.objects.exclude(pk=instance.pk).available_to_user(profile.user)
+        if available:
+            profile.state = available[0]
+        else:
+            profile.state = get_guest_state()
+        profile.save(update_fields=['state'])
+
+
 # Is there a smarter way to intercept pre_save with a diff main_character or state?
 @receiver(post_save, sender=UserProfile)
 def reassess_on_profile_save(sender, instance, created, *args, **kwargs):
diff --git a/authentication/tests.py b/authentication/tests.py
new file mode 100644
index 00000000..5d2b70ca
--- /dev/null
+++ b/authentication/tests.py
@@ -0,0 +1,240 @@
+from __future__ import unicode_literals
+
+try:
+    # Py3
+    from unittest import mock
+except ImportError:
+    # Py2
+    import mock
+
+from django.test import TestCase
+from django.contrib.auth.models import User
+from alliance_auth.tests.auth_utils import AuthUtils
+from authentication.models import CharacterOwnership, UserProfile, State, get_guest_state
+from authentication.backends import StateBackend
+from eveonline.models import EveCharacter, EveCorporationInfo, EveAllianceInfo
+from esi.models import Token
+
+
+class BackendTestCase(TestCase):
+    def setUp(self):
+        self.main_character = EveCharacter.objects.create(
+            character_id=1,
+            character_name='Main Character',
+            corporation_id=1,
+            corporation_name='Corp',
+            corporation_ticker='CORP',
+        )
+        self.alt_character = EveCharacter.objects.create(
+            character_id=2,
+            character_name='Alt Character',
+            corporation_id=1,
+            corporation_name='Corp',
+            corporation_ticker='CORP',
+        )
+        self.unclaimed_character = EveCharacter.objects.create(
+            character_id=3,
+            character_name='Unclaimed Character',
+            corporation_id=1,
+            corporation_name='Corp',
+            corporation_ticker='CORP',
+        )
+        self.user = AuthUtils.create_user('test_user', disconnect_signals=True)
+        AuthUtils.disconnect_signals()
+        CharacterOwnership.objects.create(user=self.user, character=self.main_character, owner_hash='1')
+        CharacterOwnership.objects.create(user=self.user, character=self.alt_character, owner_hash='2')
+        UserProfile.objects.update_or_create(user=self.user, defaults={'main_character': self.main_character})
+        AuthUtils.connect_signals()
+
+    def test_authenticate_main_character(self):
+        t = Token(character_id=self.main_character.character_id, character_owner_hash='1')
+        user = StateBackend().authenticate(token=t)
+        self.assertEquals(user, self.user)
+
+    def test_authenticate_alt_character(self):
+        t = Token(character_id=self.alt_character.character_id, character_owner_hash='2')
+        user = StateBackend().authenticate(token=t)
+        self.assertEquals(user, self.user)
+
+    def test_authenticate_unclaimed_character(self):
+        t = Token(character_id=self.unclaimed_character.character_id, character_name=self.unclaimed_character.character_name, character_owner_hash='3')
+        user = StateBackend().authenticate(token=t)
+        self.assertNotEqual(user, self.user)
+        self.assertEqual(user.username, 'Unclaimed_Character')
+        self.assertEqual(user.profile.main_character, self.unclaimed_character)
+
+    def test_iterate_username(self):
+        t = Token(character_id=self.unclaimed_character.character_id,
+                  character_name=self.unclaimed_character.character_name, character_owner_hash='3')
+        username = StateBackend().authenticate(token=t).username
+        t.character_owner_hash = '4'
+        username_1 = StateBackend().authenticate(token=t).username
+        t.character_owner_hash = '5'
+        username_2 = StateBackend().authenticate(token=t).username
+        self.assertNotEqual(username, username_1, username_2)
+        self.assertTrue(username_1.endswith('_1'))
+        self.assertTrue(username_2.endswith('_2'))
+
+
+class CharacterOwnershipTestCase(TestCase):
+    def setUp(self):
+        self.user = AuthUtils.create_user('user', disconnect_signals=True)
+        self.alt_user = AuthUtils.create_user('alt_user', disconnect_signals=True)
+        self.character = EveCharacter.objects.create(
+            character_id=1,
+            character_name='Main Character',
+            corporation_id=1,
+            corporation_name='Corp',
+            corporation_ticker='CORP',
+        )
+
+    def test_create_ownership(self):
+        Token.objects.create(
+            user=self.user,
+            character_id=self.character.character_id,
+            character_name=self.character.character_name,
+            character_owner_hash='1',
+        )
+        co = CharacterOwnership.objects.get(character=self.character)
+        self.assertEquals(co.user, self.user)
+        self.assertEquals(co.owner_hash, '1')
+
+    def test_transfer_ownership(self):
+        Token.objects.create(
+            user=self.user,
+            character_id=self.character.character_id,
+            character_name=self.character.character_name,
+            character_owner_hash='1',
+        )
+        Token.objects.create(
+            user=self.alt_user,
+            character_id=self.character.character_id,
+            character_name=self.character.character_name,
+            character_owner_hash='2',
+        )
+        co = CharacterOwnership.objects.get(character=self.character)
+        self.assertNotEqual(self.user, co.user)
+        self.assertEquals(self.alt_user, co.user)
+
+    def test_clear_main_character(self):
+        Token.objects.create(
+            user=self.user,
+            character_id=self.character.character_id,
+            character_name=self.character.character_name,
+            character_owner_hash='1',
+        )
+        self.user.profile.main_character = self.character
+        self.user.profile.save()
+        Token.objects.create(
+            user=self.alt_user,
+            character_id=self.character.character_id,
+            character_name=self.character.character_name,
+            character_owner_hash='2',
+        )
+        self.user = User.objects.get(pk=self.user.pk)
+        self.assertIsNone(self.user.profile.main_character)
+
+
+class StateTestCase(TestCase):
+    def setUp(self):
+        self.user = AuthUtils.create_user('test_user', disconnect_signals=True)
+        AuthUtils.add_main_character(self.user, 'Test Character', '1', corp_id='1', alliance_id='1',
+                                     corp_name='Test Corp', alliance_name='Test Alliance')
+        self.guest_state = get_guest_state()
+        self.test_character = EveCharacter.objects.get(character_id='1')
+        self.test_corporation = EveCorporationInfo.objects.create(corporation_id='1', corporation_name='Test Corp',
+                                                                  corporation_ticker='TEST', member_count=1)
+        self.test_alliance = EveAllianceInfo.objects.create(alliance_id='1', alliance_name='Test Alliance',
+                                                            alliance_ticker='TEST', executor_corp_id='1')
+        self.member_state = State.objects.create(
+            name='Test Member',
+            priority=150,
+        )
+
+    def _refresh_user(self):
+        self.user = User.objects.get(pk=self.user.pk)
+
+    def test_state_assignment_on_character_change(self):
+        self.member_state.member_characters.add(self.test_character)
+        self._refresh_user()
+        self.assertEquals(self.user.profile.state, self.member_state)
+
+        self.member_state.member_characters.remove(self.test_character)
+        self._refresh_user()
+        self.assertEquals(self.user.profile.state, self.guest_state)
+
+    def test_state_assignment_on_corporation_change(self):
+        self.member_state.member_corporations.add(self.test_corporation)
+        self._refresh_user()
+        self.assertEquals(self.user.profile.state, self.member_state)
+
+        self.member_state.member_corporations.remove(self.test_corporation)
+        self._refresh_user()
+        self.assertEquals(self.user.profile.state, self.guest_state)
+
+    def test_state_assignment_on_alliance_addition(self):
+        self.member_state.member_alliances.add(self.test_alliance)
+        self._refresh_user()
+        self.assertEquals(self.user.profile.state, self.member_state)
+
+        self.member_state.member_alliances.remove(self.test_alliance)
+        self._refresh_user()
+        self.assertEquals(self.user.profile.state, self.guest_state)
+
+    def test_state_assignment_on_higher_priority_state_creation(self):
+        self.member_state.member_characters.add(self.test_character)
+        self.higher_state = State.objects.create(
+            name='Higher State',
+            priority=200,
+        )
+        self.higher_state.member_characters.add(self.test_character)
+        self._refresh_user()
+        self.assertEquals(self.higher_state, self.user.profile.state)
+        self.higher_state.member_characters.clear()
+        self._refresh_user()
+        self.assertEquals(self.member_state, self.user.profile.state)
+        self.member_state.member_characters.clear()
+
+    def test_state_assignment_on_lower_priority_state_creation(self):
+        self.member_state.member_characters.add(self.test_character)
+        self.lower_state = State.objects.create(
+            name='Lower State',
+            priority=125,
+        )
+        self.lower_state.member_characters.add(self.test_character)
+        self._refresh_user()
+        self.assertEquals(self.member_state, self.user.profile.state)
+        self.lower_state.member_characters.clear()
+        self._refresh_user()
+        self.assertEquals(self.member_state, self.user.profile.state)
+        self.member_state.member_characters.clear()
+
+    def test_state_assignment_on_priority_change(self):
+        self.member_state.member_characters.add(self.test_character)
+        self.lower_state = State.objects.create(
+            name='Lower State',
+            priority=125,
+        )
+        self.lower_state.member_characters.add(self.test_character)
+        self._refresh_user()
+        self.lower_state.priority = 500
+        self.lower_state.save()
+        self._refresh_user()
+        self.assertEquals(self.lower_state, self.user.profile.state)
+        self.lower_state.priority = 125
+        self.lower_state.save()
+        self._refresh_user()
+        self.assertEquals(self.member_state, self.user.profile.state)
+
+    def test_state_assignment_on_state_deletion(self):
+        self.member_state.member_characters.add(self.test_character)
+        self.higher_state = State.objects.create(
+            name='Higher State',
+            priority=200,
+        )
+        self.higher_state.member_characters.add(self.test_character)
+        self._refresh_user()
+        self.assertEquals(self.higher_state, self.user.profile.state)
+        self.higher_state.delete()
+        self._refresh_user()
+        self.assertEquals(self.member_state, self.user.profile.state)
diff --git a/authentication/tests/__init__.py b/authentication/tests/__init__.py
deleted file mode 100644
index e69de29b..00000000
diff --git a/authentication/tests/test_ownership.py b/authentication/tests/test_ownership.py
deleted file mode 100644
index c08a449f..00000000
--- a/authentication/tests/test_ownership.py
+++ /dev/null
@@ -1,52 +0,0 @@
-from __future__ import unicode_literals
-
-try:
-    # Py3
-    from unittest import mock
-except ImportError:
-    # Py2
-    import mock
-
-from django.test import TestCase
-from alliance_auth.tests.auth_utils import AuthUtils
-from authentication.models import State, get_guest_state
-from eveonline.models import EveCharacter, EveCorporationInfo, EveAllianceInfo
-
-"""
-class StateTestCase(TestCase):
-    def setUp(self):
-        self.user = AuthUtils.create_user('test_user', disconnect_signals=True)
-        AuthUtils.add_main_character(self.user, 'Test Character', '1', corp_id='1', alliance_id='1',
-                                     corp_name='Test Corp', alliance_name='Test Alliance')
-        self.guest_state = get_guest_state()
-        self.test_character = EveCharacter.objects.get(character_id='1')
-        self.test_corporation = EveCorporationInfo.objects.create(corporation_id='1', corporation_name='Test Corp',
-                                                                  corporation_ticker='TEST', member_count=1)
-        self.test_alliance = EveAllianceInfo.objects.create(alliance_id='1', alliance_name='Test Alliance',
-                                                            alliance_ticker='TEST', executor_corp_id='1')
-        self.member_state = State.objects.create(
-            name='Test Member',
-            priority=150,
-        )
-
-    def test_state_assignment_on_character_change(self):
-        self.member_state.member_characters.add(self.test_character)
-        self.assertEquals(self.user.profile.state, self.member_state)
-
-        self.member_state.member_characters.remove(self.test_character)
-        self.assertEquals(self.user.profile.state, self.guest_state)
-
-    def test_state_assignment_on_corporation_change(self):
-        self.member_state.member_corporations.add(self.test_corporation)
-        self.assertEquals(self.user.profile.state, self.member_state)
-
-        self.member_state.member_corporations.remove(self.test_corporation)
-        self.assertEquals(self.user.profile.state, self.guest_state)
-
-    def test_state_assignment_on_alliance_addition(self):
-        self.member_state.member_alliances.add(self.test_alliance)
-        self.assertEquals(self.user.profile.state, self.member_state)
-
-        self.member_state.member_alliances.remove(self.test_alliance)
-        self.assertEquals(self.user.profile.state, self.guest_state)
-"""
\ No newline at end of file