Like many other monarchist politicians of his time, he ended up adopting a "resigned acceptance" to the new regime, as he feared any reaction could lead the country to a civil war. Afonso Pena remained a convinced monarchist and continued to defend the figure of emperor Pedro II, whom he considered to be a man of "great knowledge and services". State Senator (1892) The new republican government, headed by Deodoro da Fonseca, appointed Cesário Alvim as president of Minas Gerais; Alvim did not join the republican movement until late, which caused apprehension on Minas Gerais' so-called "historical republicans". Pena's retirement from politics, however, did not last long: as he was famous for being a conciliatory politician, he was invited by the newly founded Minas Gerais Republican Party to be a candidate for the and the Constituent Assembly in 1891. Pena was elected for the position, helping in Minas Gerais' transition from province to state by pacifying its political conflicts and assuming a leading role in the creation of the state's constitution. The constitution granted more autonomy for the municipalities, as Pena had envisioned years before; it also provided for the creation of a new state capital to replace Ouro Preto and a bicameral legislature. The change of the capital from Ouro Preto was the most controversial point; Afonso Pena then proposed to postpone the decision until a commision of specialists presented the new possible locations, which was agreed. As state senator Pena clashed with the Leopoldina Railway Company, which was the largest railway in Minas Gerais, approving a measure that forced the company to abide by its contract duties or else lose its concession to operate. He also proposed that members of the judiciary be appointed through public competition, instead of personalistic criteria, as had been the case until then; this stance was in line with his preference for personal ability instead of political nominations, although it is not possible to say he did not made nominations based on political criteria rather than individual capacity during his political career. This preference would be reflected in his cabinet when president years later. Pena defended the expansion of railways in Minas Gerais and the organization of public education. He was against what he called "empregomania", that is, the students' excessive preference, at the time, for public jobs, which consumed public finances. This was also the opinion of other politicians at the time.