Getting Rid of Tests?

Ok ok so I'm not getting rid of all tests, but I'm revamping the way they are taken. Currently students take their quizzes online and then take their Mastery Tests with me during a scheduled time. A large number of students took the test last week and I have to admit with our short 45 minute periods and all the activity going on in school, finding a time for students to take the test and finish it was a real problem. Many students still need to complete their essays, I find that 45 minutes is not enough time for a well thought out essay.

I spoke with one of my faster moving classes about this today, and they suggested taking the tests online as well. The current style of the test is choosing terms to identify and define and then choosing two essays. I'm trying on tests at least to do away with multiple choice. I am keeping multiple choice for the quizzes however as that is the style of standardized testing in this state.

Doing the tests at home would mean students would have access to their notes during the test, but the more I think about it, the more I think this is ok. I have long said history is not about memorizing facts and dates but about synthesizing information, and understanding why things are important. Shifting away from a memorization test would, in my opinion, be even more of a leap towards mastery of content learning. Students take notes, but do they use them to actually study? I don't think so. Testing this way would allow them to take their notes and actually demonstrate to me that they understand relationships. It would also allow them as much time as needed.

I'm definitely concerned about the backlash I may get from the administration about not actually giving "tests" but I also know that this is much closer to how they will be assessed in college (far away thoughts for 7th graders but isn't that how we should be preparing them)?

Finally this will be the last push I think towards a (nearly) paperless classroom.

Has anybody else done away with in class testing? What about allowing students full access to notes and material while being assessed?